According to the Modigliani and Miller dividend indifference theorem, if a company decreased its dividend per share, an investor would be forced to sell his common share at a depressed price.

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The Modigliani and Miller dividend indifference theorem states that the total return to shareholders (dividends plus capital appreciation) is not affected by the company's dividend policy. Therefore, a decrease in dividend per share would not necessarily force an investor to sell their shares at a depressed price.

According to the Modigliani and Miller Dividend Indifference Theorem, If