dividend irrelevance theory says that while dividend policy does not affect a firm's value, it can affect the cost of capital.

Name: dividend irrelevance theory says that while dividend policy does not affect a firm's value, it can affect the cost of capital.
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The dividend irrelevance theory, proposed by Modigliani and Miller, suggests that dividend policy does not affect a firm's value or its cost of capital in a perfect market.

Dividend Irrelevance Theory Says That While Dividend Policy Does Not