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In Miller and Modigliani's Perfect World, What Is Likely to Happen

Question 42

Multiple Choice

In Miller and Modigliani's perfect world, what is likely to happen after a company announces a policy of high near- term dividends?


A) Changes to the share price are unpredictable.
B) The share price will decrease.
C) There will be no change to the share price.
D) The share price will increase.

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