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1. If you invest for your retirement solely through tax-advantaged accounts like IRAs or 401(k) plans, do you care about a firm's payout policy? If

1.    If you invest for your retirement solely through tax-advantaged accounts like IRAs or 401(k) plans, do you care about a firm's payout policy? If so, under what circumstances or assumptions?

1.    Imagine a very simple firm with the following balance sheet:

1.    

Assets

 

Liabilities

 

Cash

10

Debt

30

PP&E

90

Equity

 

 

 

Retained Earnings

35

 

 

Paid-in Capital

35

Total Assets

100

Total Liabilities & Equity

100

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