What is the bird-in-the-hand fallacy in dividend theory under perfect capital markets?
What will be an ideal response?
Answer: According to Modigliani and Miller under perfect capital markets shareholders can generate an equivalent homemade dividend at any time by selling shares. Thus the dividend choice of the firm should not matter.
Diff: 1 Var: 1
Business
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A(n) ________ is a promise to deliver specific benefits associated with products or services to consumers
A) service B) brand C) license D) patent E) alliance
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What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?
A) Greater than or equal to 97 percent B) Less than 97 percent but greater than or equal to 95 percent C) Less than 95 percent but greater than or equal to 93 percent D) Less than 93 percent
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