A Key Assumption of the Miller and Modigliani (MM)dividend Irrelevance

question 8

Multiple Choice

A key assumption of the Miller and Modigliani (MM) dividend irrelevance argument is that

• A)future stock prices are certain.
• B)firms have an adequate supply of Treasury shares.
• C)there exists a risk-free asset.
• D)new shares are sold at a fair price.

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Definitions:

Private Speech

Verbal communication directed at oneself, used as a tool for thinking and self-regulation by children and adults.

Zone Of Proximal Development

The zone of proximal development is a concept in educational psychology that describes the difference between what a learner can do without help and what they can achieve with guidance.

Zone Of Proximal Development

The Zone of Proximal Development is a concept in educational psychology representing the difference between what a learner can do without help and what he or she can achieve with guidance and encouragement from a skilled partner.

Upper Limit

The highest point or level that is allowable or possible, beyond which something is not permissible or recommended.