One key assumption of the Miller and Modigliani (MM) dividend irrelevance argument is that:
A) Future stock prices are certain
B) There are no capital gains taxes
C) All investments are risk-free
D) New shares are sold at a fair price

Question

Quizplus · Accepted Answer

The MM dividend irrelevance theory assumes that new shares can be sold at a fair price, meaning that the market is efficient and reflects all available information.

One Key Assumption of the Miller and Modigliani (MM) Dividend