Which of the following statements is not true in the context of M-M's dividend theory ?

CS Executive · Financial and Strategic Management · PYQS · December 2020
Which of the following statements is not true in the context of M-M's dividend theory ?
(A) The firm operates in perfect capital markets
(B) All investors are rational
(C) There is no fixed investment policy of the firm
(D) The dividend policy of the firm is irrelevant

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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