Miller & Modigliani proved to us that in a perfect market, dividend policy does not matter. One of the arguments used was to show that firm value remains the same if instead of paying a dividend today, the funds are reinvested in the firm and paid out as a larger dividend in the future. For example, assume that the firm could pay $10,000 in dividends at the end of each year for the next two years, and then it would dissolve with no further cash flows. If the firm can earn 10% on any funds reinvested in the firm and if investors require a 10% rate of return to hold the stock which of the following statements are true? Select one: a. The firm is worth $17,355 today b. If the firm paid out na dividends at time period one, it would pay a total dividend of $21000 at time period two If the firm paid out $5,000 in dividends at time period one, it would pay S15 so in dividends at time period two d. All of the above are true e Only a. and b. above are true