a business has 1 million at its disposaland managers feel that this could either be investedin new production facilities or be paid to shareholders as a dividend.what does the separation theorem auggest that the business should do?can the business both pay the dividend and make investments?explain your answer.

a business has 1 million at its disposaland managers feel that this could either be investedin new production facilities or be paid to shareholders as a dividend.what does the separation theorem auggest that the business should do?can the business both pay the dividend and make investments?explain your answer.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section: Chapter Questions

Problem 1bM

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a business has 1 million at its disposal and managers feel that this could either be invested in new production facilities or be paid to shareholders as a dividend.what does the separation theorem that suggest the business should do?can the business both pay the dividend and make investments?
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