Multiple Choice
A company has many positive NPV projects to fund but pays all of its profits as dividends. How could it continue to create shareholder wealth in Miller and Modigliani's perfect world?
A) By issuing shares at low prices so that investors would pay for them
B) By forgoing the projects
C) By issuing shares, knowing that investors would willingly pay a fair price for them
D) By not paying dividends in future years
Correct Answer:
Verified
Correct Answer:
Verified
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