According to Modigliani and Miller, a firm's dividend policy is irrelevant: if the financial markets are inefficient if the financial markets are perfect if the financial markets are efficient if all investors are rational because dividends are discretionary
According to Modigliani and Miller, a firm's dividend policy is irrelevant: if the financial markets are inefficient if the financial markets are perfect if the financial markets are efficient if all investors are rational because dividends are discretionary
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach
Section: Chapter Questions
Problem 8QE
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According to Modigliani and Miller, a firm's dividend policy is irrelevant:
if the financial markets are inefficient
if the financial markets are perfect
if the financial markets are efficient
if all investors are rational
because dividends are discretionary
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