The Modigliani and Miller Dividend Irrelevancy Theorem States That

question 49

Multiple Choice

The Modigliani and Miller dividend irrelevancy theorem states that

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

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Definitions:

Wave-wound

A type of armature winding in electrical engineering where coils are connected in series to form a continuous and closed circuit, resembling a wave pattern.

Series Field

A type of field winding in a DC generator that is connected in series with the armature, influencing the generator's output.

Shunt Rheostat

A variable resistor connected in parallel with a circuit element to adjust the flow of current through it, allowing for the control of electrical device performance.

Series Rheostat

An adjustable resistor used in series with a circuit to control the current flow by varying its resistance.