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In a perfect world… reality is different, however. Plenty of companies take on debt to pay dividends, e.g. just before going public.
by cluckindan 7mo ago
In a perfect world… reality is different, however.
Plenty of companies take on debt to pay dividends, e.g. just before going public.
- fsckboy 7mo agogrowing companies generally have capital needs that exceed retained earnings, so paying dividends would by definition increase capital need.