How do Miller and Modigliani (M&M) arrive at their conclusion that dividend policy is irrelevant in a

Question:

How do Miller and Modigliani (M&M) arrive at their conclusion that policy is irrelevant in a world of frictionless capital markets? Why is the assumption of fixed investment policy crucial to this conclusion?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...