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MM's dividend irrelevance theory says that while dividend policy does not a
MM's dividend irrelevance theory says that while dividend policy does not affect a firm's value . The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm- stock price. a. True b. False . The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price. a. True b. False . MM's dividend irrelevance theory says that while dividend policy does not affect a firm's value, it can affect the cost of capital. a. True b. False . If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio. a. True b. False . The announcement of an increase in the cash dividend should, according to MM, lead to an increase in the price of the firm's stock. a. True b. False Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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04 May 2016
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MM's dividend irrelevance theory says that while dividend policy does not affect a firm's value
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