Modigliani and Miller Suggest That the Value of a Firm

question 2

Multiple Choice

Modigliani and Miller suggest that the value of a firm is not affected by the firm's dividend policy, due to ________.

• A) the relevance of dividends
• B) the clientele effect
• C) the informational content
• D) the optimal capital structure

---

Definitions:

Exact Tender

The requirement for a payment in the precise amount owed, without needing change.

Customary

Practices or actions that are accepted and expected within a particular community or society, based on traditions or long-standing use.

Frustrated

In legal terms, it refers to a contract or agreement that has become impossible to execute as initially intended due to unforeseen circumstances.

Antique Japanese Sword

A traditional and historical Japanese sword, such as a katana, that is of significant age, valued for its craftsmanship and historical importance.