Quiz Ch 14 – T/F Miller and Modigliani’s Perspective on Dividend Preference Evidence
True or false: When a company earning $2 and paying a $1.00 dividend (50% payout) boosts the dividend to $1.50, leading the stock price to rise from $20 to $30, some contend this is evidence of investors favoring dividends over retained earnings. Miller and Modigliani would support this view.
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