An Assumption of the MM Dividend Irrelevance Proposition Is

question 115

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:

Experimenter Expectancy

The phenomenon where the biases and expectations of the experimenter unconsciously influence the participants of an experiment.

Filler Items

Items included in a questionnaire measure to help disguise the true purpose of the measure.

Automated Procedures

Tasks or operations conducted automatically through the use of technology, software, or machinery, often requiring minimal human intervention.

Experimenter Bias

A form of research bias where the researcher unintentionally influences the results of a study through their expectations or conduct.