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:

Tumor

An abnormal growth of tissue that can be benign (non-cancerous) or malignant (cancerous), arising from an uncontrolled division of cells.

Surgery

A medical procedure involving the manual and instrumental techniques to investigate or treat a pathological condition such as disease or injury.

Amnesiac

A person suffering from amnesia, which is a condition that results in the loss of memories, such as facts, information, and experiences.

Long-term Memories

Memories that can be retained for extended periods of time, ranging from days to decades, and include events, facts, and experiences.