The Dividend Irrelevance Hypothesis Is Based on All of the Following

question 116

Multiple Choice

The dividend irrelevance hypothesis is based on all of the following assumptions EXCEPT

• A) investment decisions will not be altered by the amount of dividend payments.
• B) investors do not need cash dividends to supplement their current income.
• C) perfect capital markets.
• D) borrowing decisions will not be altered by the amount of dividend payments.

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