The Dividend Irrelevancy Proposition States That It Does Not Matter

question 5

True/False

The dividend irrelevancy proposition states that it does not matter what level of dividend the company pays the share price will remain the same.Hence dividends are irrelevant.

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Definitions:

Spot Exchange Rates

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Speculative Derivatives

Financial instruments used to speculate on the future movements of asset prices, without intention of holding the underlying assets.

Net Income

The total amount of profit earned by a company after all expenses and taxes have been subtracted from revenue.