MM's Proposition of Dividend Irrelevance Depends Upon

question 67

Multiple Choice

MM's proposition of dividend irrelevance depends upon:

• A) firms maintaining a constant dividend payout.
• B) dividends being taxed the same as capital gains.
• C) the existence of a dividend clientele.
• D) the efficiency of capital markets.

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Definitions:

Basal Metabolic Rate

The amount of energy expended by a body at rest in a neutral environment, necessary to maintain basic bodily functions.

Appetite-Enhancing Center

A region in the brain, often associated with the hypothalamus, that stimulates the desire to eat.

Hormone

A chemical substance produced in the body that controls and regulates the activity of certain cells or organs.

PYY

A hormone, short for Peptide YY, produced in the gut in response to eating and is associated with reducing appetite and inhibiting food intake.