Quiz Ch 14 – T/F Dividend Irrelevance Theory: Impact on Cost of Capital and Stock Price

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Miller and Modigliani's theory of dividend irrelevance posits that the proportion of earnings a company distributes as dividends holds no influence over its cost of capital, yet it does impact its stock price.

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