Assume that investors' have a 10% required rate of return on MTA stock. According to the Modigliani and Miller dividend indifference theorem, if investors could choose between a $1.00 dividend today and $1.10 dividend one year from today
A) they would prefer $1.00 today.
B) they would prefer $1.10 one year from today.
C) neither alternative would satisfy them.
D) they would have no preference.
Answer: D
Business
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