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(4 points) One key assumption of the Modigliani and Miller dividend irrelevance argument is that A) future stock prices are certain; B) dividends are taxed

  1. (4 points) One key assumption of the Modigliani and Miller dividend irrelevance argument is that

A) future stock prices are certain;

B) dividends are taxed at a higher rate than capital gains;

C) shares are traded at a fair price;

D) all investments are risk-free;

E) investors prefer cash dividends to share repurchases.

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