The Modigliani and Miller Dividend Irrelevancy Theorem States That

question 126

Multiple Choice

The Modigliani and Miller dividend irrelevancy theorem states that

• A) dividends are preferable to stock repurchases.
• B) the timing of cash distributions is important.
• C) the timing of cash distributions is unimportant.
• D) stock repurchases are preferable to dividends.

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Definitions:

Appositional Growth

A method of growth by which new layers are added on the surfaces of existing tissues, seen in bone and cartilage development.

Electrical Charge

A physical property that causes matter to experience a force when placed in an electromagnetic field, characterized by being positive or negative.

Osteoblasts

Cells with the primary function of synthesizing bone, playing an essential role in bone growth and repair.

Electrical Charges

Properties of particles that give rise to electric forces; positive and negative charges attract each other, while like charges repel.