Modigliani and Miller, Recognizing That Dividends Do Somehow Affect Stock

question 96

Multiple Choice

Modigliani and Miller, recognizing that dividends do somehow affect stock prices, suggest thatpositive effects of dividend increases are attributable

• A) directly to the optimal capital structure.
• B) not to the informational content but to the consistency in the payment of dividends.
• C) directly to the dividend policy.
• D) not to the dividend itself but to the informational content of the dividends with respect to future earnings.

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Definitions:

Nitrogen Cycle

A biogeochemical cycle describing the transformations of nitrogen and nitrogen-containing compounds in nature.

Slash-And-Burn Agriculture

A method of agriculture where vegetation is cut down and burned as a technique to clear land for cultivation, but can lead to soil degradation and deforestation.

Stratospheric Ozone

A layer of ozone molecules located in the Earth's stratosphere, protecting life by absorbing most of the sun's harmful ultraviolet radiation.

UVB

Ultraviolet B light, a component of sunlight with wavelengths between 280-315 nm, known for its role in vitamin D synthesis and skin tanning.