FIN 405 - Catering Theory

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The catering theory of dividends suggests that managers pay dividends because of investor demand. Using knowledge gained from this chapter, conduct a search in the Strayer Library for an article on this theory. Indicate the article you found and briefly provide an opinion on this theory. Propose alternative ways, covered in the reading material this week, in which investors can receive cash returns from their investment in the equity of a company.

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