The Modigliani and Miller Dividend Irrelevancy Theorem States That

question 66

Multiple Choice

The Modigliani and Miller dividend irrelevancy theorem states that

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

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Definitions:

Cylinders

Geometric shapes or mechanical parts that are solid and have straight parallel sides with a circular or oval cross-section and equally shaped ends.

Drill Bits

Cutting tools used to remove material to create holes, almost always of circular cross-section.

Taper Ratio

The ratio describing how much a tapered feature reduces in diameter over a specified length.

Taper Angle

The angle at which a tapered feature decreases in diameter from one part to another.