Which of the Following Modigliani and Miller Assumptions Regarding Dividend

question 46

Multiple Choice

Which of the following Modigliani and Miller assumptions regarding dividend irrelevance is true?

• A)There are no personal or corporate taxes.
• B)Investors can borrow at the same rate as the company.
• C)All market participants (e.g.management and shareholders)have the same information.
• D)There are no costs of trading shares.
• E)None of the above

---

Definitions:

Database

A structured collection of data that is easily accessible, managed, and updated.

Simple Query Wizard

A tool in database applications that guides users through the process of creating queries, making it easier to extract specific data.

Query

A request for data or information from a database, typically written in a structured query language (SQL), that can retrieve or manipulate data.

Create

To make or produce something new, such as a document, database, or piece of art, from scratch.