The dividend-irrelevance proposition of Miller and Modigliani depended on the following relationship between investment policy and dividend policy.
A) The level of investment does not influence or matter to the dividend decision.
B) Once dividend policy is set the investment decision can be made as desired.
C) The investment policy is set before the dividend decision and not changed by dividend policy.
D) Since dividend policy is irrelevant there is no relationship between investment policy and dividend policy.
Correct Answer:
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