Which of the following is included in the Modigliani and Miller dividend indifference theorem?
A)Transaction costs
B)Personal taxes
C)Changes in the firm's investment policies
D)All of the above

Question

Quizplus · Accepted Answer

The Modigliani and Miller dividend indifference theorem states that the dividend policy of a company does not affect its value, assuming perfect capital markets. This theorem includes all factors that can influence the value of a company, including transaction costs, personal taxes, and changes in the firm's investment policies. Therefore, the correct answer is D, all of the above.

Which of the Following Is Included in the Modigliani and Miller