Question 2 Which of the following statements is correct regarding payout? 1. II. Modigliani and Miller states that in a world with perfect capital markets the payout policy is irrelevant. The payout practice in which firm offers to buy a specified number of shares at a (specified) fixed price during a (specified) period of time is called fixed price tender offer. The signaling effect of dividends suggests that companies should start paying dividends at any time. Stock price generally increases on the dividend payout date. III. IV. A. B. C. D. E. I and II only I and III only II and IV only I, II, and IV only None of the choice combinations given in A., B., C., and D. are correct