Quiz Ch 17 – Factors Affecting MM’s Dividend Irrelevance Proposition
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What does MM’s proposition of dividend irrelevance rely on?
What does MM’s proposition of dividend irrelevance rely on?
In what situations is a company more inclined to repurchase stock rather than pay out dividends?
Which share repurchase approach involves investors submitting bids, with the company accepting the lowest bids sequentially?
Which option is NOT a method for repurchasing stock?
Which statement is NOT accurate?
Under what circumstance will a reduced current payout have no impact on the stock price in the context of the dividend growth model?
How does a stock dividend affect both the book and market values of the firm?
Which would typically not be anticipated to influence share price in the absence of market imperfections?
How do investors typically interpret a decrease in a company’s usual dividend payments?
How might investors interpret stock repurchases as a signal regarding the company’s situation?