Examlex

Solved

The Residual Theory of Dividends, as Espoused by Modigliani and Miller

question 99

True/False

The residual theory of dividends, as espoused by Modigliani and Miller, suggests that dividends represent an earnings residual rather than an active decision variable that affects firm value; this means that a firm's decision to pay dividends or not will not have any impact on a firm's share price.


Definitions:

Related Questions