Miller and Modigliani's Indifference Proposition Regarding Dividend Policy

question 13

Multiple Choice

Miller and Modigliani's indifference proposition regarding dividend policy

• A)assumes that tax rates increase at the same rate as inflation.
• B)assumes that investors can sell their stock at a fair price.
• C)states that investors are indifferent between stock dividends and cash dividends.
• D)states that investors are indifferent between stock repurchases and cash dividends.

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