Which of the Following Is an Assumption of the Miller-Modigliani

question 7

Multiple Choice

Which of the following is an assumption of the Miller-Modigliani dividend irrelevancy theorem?

• A)The expected rate of return of the firm is equal to the dividend growth rate.
• B)The firm will make profit every year and consistently pay dividends.
• C)The firm is either 100% equity financed or 100% debt financed.
• D)The investment,financing and operating policies of the firm are held fixed.

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