Solve the question. Discuss and explain with justification for the answer

OBJECTIVE TEST gy STIONS : 67 o According to Modigliani and Miller's dividend irrelevancy theory, in lestors a whether they receive a dividend or Capital growth in their share ac tn panthatins their own dividend by selling shares. Which THREE of the following are reasons why an investor might disagree with this theory? A Transaction costs may apply when selling shares B Tax planning will be affected c Share price will fall if no dividends are paid D The investor is reliant on the cash dividend E The investor's ability to influence management will be reduced