According to Miller and Modigliani, it is ____ that really determines a firm's value.
A) investment policy
B) dividend policy
C) payout ratio
D) transaction costs

Question

Quizplus · Accepted Answer

Miller and Modigliani's theory suggests that a firm's value is determined by its investment policy, specifically how efficiently it uses its available funds to generate future profits. Dividend policy, payout ratio, and transaction costs are all important considerations for a firm, but they do not directly determine its overall value according to this theory.

According to Miller and Modigliani, It Is ____ That Really