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Asked Nov 23, 2019

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**What effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will increasing its dividend per share by 1.75 support or inhibit that goal? Be sure to justify reasoning. **

Step 1

Dividends also have a direct relationship with the shareholder’s value because before purchasing the stocks of a company, and investors first see the return from that stocks if returns are attractive and constant then the investor purchase that stock.

Payment of constant dividend always increases the shareholder’s value because the constant dividend always attract...

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