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In the Theoretical World of Miller and Modigliani, ____

Question 40

Multiple Choice

In the theoretical world of Miller and Modigliani, ____.


A) a firm should pay out 100% of earnings as dividends to maximize shareholder wealth
B) the marginal tax rates facing investors are the most important single determinant of dividend policy
C) dividends are important only for their informational content
D) dividends reduce investors' uncertainty

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