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    Financial Management Theory and Practice Study Set 4
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    Exam 14: Distributions to Shareholders: Dividends and Repurchases
  5. Question
    The Dividend Irrelevance Theory, Proposed by Miller and Modigliani, Says
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The Dividend Irrelevance Theory, Proposed by Miller and Modigliani, Says

Question 20

Question 20

True/False

The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price.

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