... availability and cost of outside capital affect dividend policy?OVERVIEW OF THE DIVIDEND POLICY DECISIONIn many ways, our discussion of dividend policy parallels our discussion of cap-ital structure: ... income would be disadvantaged. The value of their stock might increase, but they would be forced to go to the trouble andexpense of selling off some of their shares to obtain cash. Also, some ... Costs and the Clientele Effect of Dividends,” The Journal of Financial Economics, December 1977, 419–436.Clientele EffectThe tendency of a firm to attract aset of investors who like itsdividend...