Modigliani and Miller suggest that the value of the firm is not affected by the firm’s dividend policy, due to
A. the relevance of dividends.
B. the clientele effect.
C. the informational content.
D. the optimal capital structure.
Answer:B
Modigliani and Miller suggest that the value of the firm is not affected by the firm’s dividend policy, due to
A. the relevance of dividends. B. the clientele effect. C. the informational content. D. the optimal capital structure.