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

question 63

Multiple Choice

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

• A) Future stock prices are certain
• B) There are no capital gains taxes
• C) Capital markets are efficient
• D) All investments are risk-free

---

Definitions:

Downward

Describes the direction that is towards a lower position or level.

Graph

A visual representation of data or mathematical functions, often displayed within a coordinate system.

Equation

A mathematical statement that asserts the equality of two expressions, consisting of variables and constants.

Vertex

In geometry, a vertex is the point where two or more curves, edges, or lines meet. In graph theory, it refers to a node or a point where lines or edges join.