Suppose the MillerModigliani (MM) theory of dividend policy is correct. How would a government-imposed dividend freeze affect

Question:

Suppose the Miller–Modigliani (MM) theory of dividend policy is correct. How would a government-imposed dividend freeze affect

(a) Stock prices?

(b) Capital investment?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...