An Assumption of the MM Dividend Irrelevance Proposition Is

question 16

Multiple Choice

An assumption of the MM dividend irrelevance proposition is:

• A) investors are willing to pay higher prices for shares with higher payouts.
• B) capital gains are offset by receiving no dividend.
• C) extra cash dividends are offset by a capital gain.
• D) extra cash dividends are offset by a capital loss.

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Definitions:

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Hans Eysenck

A psychologist known for his work in the fields of personality and intelligence, and for developing a theory of personality based on the dimensions of extraversion and neuroticism.

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A method of therapy and psychological theory developed by Sigmund Freud, focusing on unconscious motivations and conflicts.