It is widely accepted that dividend valuation models are an acceptable way of valuing businesses. Modigliani and

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‘It is widely accepted that dividend valuation models are an acceptable way of valuing businesses. Modigliani and Miller said that dividends are irrelevant to valuation and so flew in the face of conventional wisdom.’

Is this statement correct? Explain.

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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Question Posted: Mar 05, 2024 06:37 AM

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It is widely accepted that dividend valuation models are an acceptable way of valuing businesses. Modigliani and

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The statement is correct but it requires some context to fully understand Franco Modigliani and Merton Miller in their seminal work on capital structu...View the full answer

Business Finance

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