ABC Ltd. belongs to a risk class for which the appropriate capitalization rate is 10%. It currently has outstanding 5,000 shares selling at TZS.100 each. The firm is contemplating the declaration of dividend of TZS .6 per share at the end of the current financial year. The company expects to have net income of TZS.50,000 and has a proposal for making new investments of TZS.1,00,000. Show that under the MM hypothesis, the payment of dividend does not affect the value of the firm