Which of These Is the Idea That It Does Not

question 75

Multiple Choice

Which of these is the idea that it does not matter whether a firm pays dividends or not as derived from a Modigliani and Miller Theorem?

• A) Dividend indifference theory
• B) Dividend irrelevance theorem
• C) Shareholder maximization theorem
• D) Shareholder rationalization theorem

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Definitions:

Encoding

The initial process of converting information into a form that can be stored and recalled later from memory.

Memory

The faculty by which the mind stores and remembers information.

Consolidation

The process by which memories become stable in the brain after their initial acquisition, often occurring during sleep.

Retention

The ability to keep or hold information in memory.