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Which One of These Statements Is True

Question 8

Multiple Choice

Which one of these statements is true?


A) Dividends are irrelevant.
B) Shareholders are unable to personally adjust the dividend policy set by a firm.
C) According to Miller and Modigliani,a firm should alter its investment policy whenever a change is made in its dividend policy.
D) Dividend policy is relevant.
E) Firms should never give up a positive NPV project to increase a dividend.

Correct Answer:

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