Which of the following states of the world is NOT required for dividend policy to be irrelevant?

Question

Quizplus · Accepted Answer

The presence or absence of dividends is not a state of the world, but rather a decision made by the company's management. Therefore, it is not required for dividend policy to be irrelevant. The irrelevance of dividend policy is based on the assumptions of perfect capital markets, where investors can buy and sell securities without transaction costs, and where there are no taxes that affect the value of dividends.

Which of the Following States of the World Is NOT