In perfect capital markets there
A) is no informational content assigned to a particular dividend policy.
B) are no income taxes.
C) are no flotation costs.
D) all of the above

Question

Quizplus · Accepted Answer

In perfect capital markets, there are no informational content assigned to a particular dividend policy, no income taxes, and no flotation costs. This is because in theory, all investors have equal access to information and there are no barriers to the flow of capital. Therefore, all investment opportunities should have equal expected returns and all forms of financing should be costless.

In Perfect Capital Markets There