According to MM theory, the market price of the share will :
According to Modigliani and Miller's (MM) Dividend Irrelevance Hypothesis, in a perfect capital market without taxes or transaction costs, a firm's dividend policy does not…
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According to MM theory, the market price of the share will :
Answer and explanation
Correct answer D
According to Modigliani and Miller's (MM) Dividend Irrelevance Hypothesis, in a perfect capital market without taxes or transaction costs, a firm's dividend policy does not affect shareholder wealth or the overall market value/price of the share because any dividend payout is offset by external equity financing.
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UGC NET Management