Assume that a company in the early stages of growth has financed itself using only a very small percentage of debt in its capital structure. It pays no dividends to its shareholders. Modigliani and Miller might well have made the following statement regarding dividend policy: "(like capital structure) the dividend policy decision of company will not affect its valuation". Explain what is meant by this statement and under what conditions it will be true. Then explain why it might not hold in reality