Question
According to Modigliani and miller, the firm's choice of dividend policy is irrelevant. Empirically, firms increase dividends much more frequently than they cut them. Discuss
According to Modigliani and miller, the firm's choice of dividend policy is irrelevant. Empirically, firms increase dividends much more frequently than they cut them. Discuss these theories in relation to other theories you have learnt.
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Modigliani and Millers dividend irrelevance theory posits that under perfect capital markets and in the absence of taxes a firms dividend policy does ...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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