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The Modigliani and Miller Dividend Theory Argues

Question 13

Multiple Choice

The Modigliani and Miller dividend theory argues:


A) that the value of the firm is determined by income produced from assets and reinvested in the firm.
B) that the value of the firm is determined by income produced from assets.
C) that the value of the firm is determined by income produced from assets and paid in dividends.
D) that most investors want dividends reinvested into the firm.

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