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    Fundamentals of Financial Management Study Set 1
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    Exam 15: Distributions to Shareholders: Dividends and Share Repurchases
  5. Question
    Miller and Modigliani's Dividend Irrelevance Theory Says That the Percentage
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Miller and Modigliani's Dividend Irrelevance Theory Says That the Percentage

Question 50

Question 50

True/False

Miller and Modigliani's dividend irrelevance theory says that the percentage of its earnings a firm pays out in dividends has no effect on either its cost of capital or its stock price.

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