The Miller and Modigliani dividend irrelevance argument assumes that the firm's investment policy and debt policy are both settled.

Question

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The Miller and Modigliani dividend irrelevance argument assumes that the firm's investment policy and debt policy are both settled, but it does not assume that the firm's dividend policy is settled. The argument states that, regardless of a firm's dividend policy, its total value is determined by its investment and financing decisions.

The Miller and Modigliani Dividend Irrelevance Argument Assumes That the Firm's