The Modigliani-Miller dividend irrelevance proposition states that in perfect capital markets, holding ________ policy fixed, the firm's choice of dividend policy is irrelevant and does not affect the initial share price.

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The Modigliani-Miller dividend irrelevance proposition posits that in perfect capital markets, the value of a firm is unaffected by its dividend policy and is determined solely by its earning power and the risk of its underlying assets, assuming the firm's investment policy is held constant.

The Modigliani-Miller Dividend Irrelevance Proposition States That in Perfect Capital