In Miller and Modigliani's perfect world, what is likely to happen after a company announces a policy of high near- term dividends?
A) Changes to the share price are unpredictable.
B) The share price will decrease.
C) There will be no change to the share price.
D) The share price will increase.
Correct Answer:
Verified
Q1: What is meant by the term 'dividend
Q2: In which of the following situations is
Q3: Which of the following statements correctly describes
Q4: A company wants to return funds without
Q5: According to Gordon, how do investors perceive
Q7: A company has many positive NPV projects
Q8: What option best summarises Myron Gordon's resolution
Q9: What did Miller and Modigliani conclude about
Q10: An unexpected change in dividends shows how
Q11: What is meant by an enhanced scrip
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents