MM's Dividend Irrelevance Theory Says That While Dividend Policy Does

question 30

True/False

MM's dividend irrelevance theory says that while dividend policy does not affect a firm's value, it can affect the cost of capital.

---

Definitions:

Unique Product

A good or service that is distinct in the marketplace due to its unique features, benefits, or technology, setting it apart from competitors.

Special Market Segment

A specific portion of the market identified by unique characteristics, differentiating it from the broader market.

Differentiation Strategy

A business approach where companies aim to develop and market unique products or services to stand out from competitors and attract a specific segment of customers.

Competitive Advantage

A scenario or element that positions a firm in a more favorable or advantageous spot relative to its competitors.