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The following companies have different financial statistics. What dividend policies would you recommend for them? Explain...

The following companies have different financial statistics. What dividend policies would you recommend for them? Explain your reasons. Turtle Co. Hare Corp. Growth rate in sales and earnings 22% 4% Cash as a percentage of total assets 5 20
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Turtle Company has high growth rates but does not enough cash balances.

Hence, it should reinvest its earnings by paying lower or 0% dividends. Its value will increase by this dividend decision.

Minimum dividend recommended.

Hare corp. has high cash balances but does not have higher growth rates.

Hence, it should try to distribute maximum earnings as dividends. So that investors can investors can invest their funds somewhere else.

Maximum dividend recommended.

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