Which Is the Minimum Assumption That Must Exist to Support

question 30

Multiple Choice

Which is the minimum assumption that must exist to support the Modernist view that dividend policy should have no effect on shareholder wealth?

• A) No assumption about market efficiency needs to exist.
• B) Weak form of capital market efficiency.
• C) Semi-strong form of capital market efficiency.
• D) Strong form of capital market efficiency.
• E) Perfect capital market efficiency.

---

Definitions:

Easement

A right granted to use the property of another for a specific purpose, such as right of way, without owning, possessing, or having any other title to the land.

Conveyance

The act of transferring ownership or interest in property from one party to another, typically through a legal document such as a deed or title.

Landlocked Properties

Properties that do not have direct access to a public road or thoroughfare, relying on easements for access.

Petitioning

The act of formally requesting something from an authority, typically through a written document.