Service

Which of the following can be inferred from the Miller and Modigliani model on dividend po

Which of the following can be inferred from the Miller and Modigliani model on dividend po

Which of the following can be inferred from the Miller and Modigliani model on dividend policy?


[A]As the dividend payout ratio increases, the share price decreases, if the rate of return is greater than the cost of capital
[B]As the dividend payout ratio decreases, the share price decreases, if the rate of return is less than the cost of capital
[C]The dividend policy of the firm does not influence its value
[D]Irrespective of the rate of return and cost of capital the share price increases, as the amount of dividend payout ratio increases

Roshan kumar 28-Dec-2017

Answer (Solved)

question Get solution