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5(B) Modigliani and Miller argue that a firm's dividend policy does not affect the value of the firm if the capital market is perfect. Why?

5(B)Modigliani and Miller argue that a firm's dividend policy does not affect the value of the firm if the capital market is perfect. Why?

(C)What is the main problem with the regular dividend policy from a firm's point of view What is the main problem with a constant payout ratio dividend policy from a shareholder's point of view?

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