The Modigliani and Miller Dividend Irrelevance Theorem Is Based on the Argument

question 35

Multiple Choice

The Modigliani and Miller dividend irrelevance theorem is based on the argument that:

• A)Dividends are preferred to capital gains
• B)Dividends and capital gains are perfect substitutes
• C)Capital gains are preferred to dividends
• D)Investors don't value dividends, hence dividends are irrelevant