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

A. MM

B. Garden

C. Walter

D. XY

Answer: Option A

Solution(By Examveda Team)

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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