Q146
According to the _______ model, the dividend decision is irrelevant.
A.
MM
AnswerB.
Garden
C.
Walter
D.
XY
Answer: Option A
Solution
Answer: Option A
Solution:
According to the MM model, the dividend decision is irrelevant. Modigliani and Miller suggested that in a perfect world with no taxes or bankruptcy cost, the dividend policy is irrelevant. They proposed that the dividend policy of a company has no effect on the stock price of a company or the company's capital structure.