The timing of dividend payments will not matter if the firm's rate of return on equity and the investor's required rate of return are the same.

Question

Quizplus · Accepted Answer

If the rate of return on equity and the investor's required rate of return are the same, then the present value of the dividend payments will be the same regardless of when they are paid. Therefore, the timing of dividend payments will not affect the value of the investment.

The Timing of Dividend Payments Will Not Matter If the Firm's