According to Modigliani and miller, the firm's choice of dividend policy is irrelevant. Empirically, firms increase dividends

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According to Modigliani and miller, the firm's choice of dividend policy is irrelevant. Empirically, firms increase dividends much more frequently than they cut them. Discuss these theories in relation to other theories you have learnt.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Mar 09, 2024 09:43 AM

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According to Modigliani and miller, the firm's choice of dividend policy is irrelevant. Empirically, firms increase dividends

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Modigliani and Millers dividend irrelevance theory posits that under perfect capital markets and in the absence of taxes a firms dividend policy does ... View the full answer

Fundamentals of corporate finance

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