Under dividend irrelevance the value of eliminated dividends is offset by growth created value in:

Question

Quizplus · Accepted Answer

According to dividend irrelevance theory, the value of eliminated dividends is offset by growth created value in the future. This means that investors are more concerned about the company's ability to generate future earnings and cash flows, which can be used for growth and expansion, rather than the amount of dividends paid out in the present. Therefore, the value of the company is determined by its future prospects and not by its dividend payments in the past or present.

Under Dividend Irrelevance the Value of Eliminated Dividends Is Offset