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ing Consider the following statements: Statement 1: It is difficult to apply the theory of homemade dividends in the real world because stock prices are

ing Consider the following statements: Statement 1: It is difficult to apply the theory of homemade dividends in the real world because stock prices are volatile. Statement 2: Miller and Modigliani (MM) suggest that current dividends reduce the risk of future cash flows. Which of the following is most likely? Both statements are incorrect. Only Statement 1 is correct. O Only Statement 2 is correct

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