One Key Assumption of the Miller and Modigliani (MM) Dividend

question 69

Multiple Choice

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

• A) Future stock prices are certain
• B) There are no capital gains taxes
• C) All investments are risk-free
• D) New shares are sold at a fair price

---

Definitions:

Antibiotics

Chemicals that interfere with the physiological activities, or structure, of bacteria.

Leukemia

Leukemia is a type of cancer affecting the blood and bone marrow, characterized by the overproduction of abnormal white blood cells.

Building Materials

Substances used in the construction of buildings, roads, and other structures, including wood, cement, steel, and glass.

Eutrophication

The process by which a body of water becomes overly enriched with minerals and nutrients, leading to excessive growth of algae and depletion of oxygen.