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Commerce · Q1124

Financial Management

Graduate and Post Graduate · Commerce · question 1124

Q1124

MM Model argues that dividend is irrelevant as:

A.
the value of the firm depends upon earning power
Answer
B.
the investors buy shares for capital gain
C.
dividend is payable after deciding the retained earnings
D.
dividend is a small amount

Answer: Option A

Solution

Answer: Option A
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