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Implications for Corporate Policy There is a positive value associated with a modest dividend could be due to institutional restrictions or signaling effects Dividends in excess of the passive policy does not appear to lead to share price improvement because of taxes and flotation costs 18-1218-12 Implications for Corporate Policy There is a positive value associated with a modest dividend. Could be due to institutional restrictions or signaling effects. Dividends in excess of the passive policy does not appear to lead to share price improvement because of taxes and flotation costs
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