Which Three of the Following Are Conditions Under Which Miller

question 21

Multiple Choice

Which three of the following are conditions under which Miller and Modigliani's theory applies?

• A) There are no taxes or transaction costs.
• B) Only company managers have free access to all relevant information.
• C) All investors have free access to all relevant information.
• D) Investors are indifferent between dividends and capital gains.

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Definitions:

Positive Outcomes

Favorable or beneficial results or effects of an action, behavior, or procedure.

Neutral Outcomes

Results or consequences of an action that neither significantly benefit nor harm the situation or the individuals involved.

Past Behaviours

Previous actions or patterns of actions taken by an individual, often used to predict future behaviors.

Free Will

The ability of agents to make choices unconstrained by certain factors, often discussed in the context of philosophy, psychology, and religion.