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According to the model the dividend decision is irrelevant

This question belongs to Commerce Financial Management
Financial Management
?

According to the _______ model, the dividend decision is irrelevant.

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Correct Answer: Option A
According to the MM model, the dividend decision is irrelevant. Modigliani and Miller suggested that in a perfect world with no taxes or bankruptcy cost, the dividend policy is irrelevant. They proposed that the dividend policy of a company has no effect on the stock price of a company or the company's capital structure.
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