Miller and Modigliani Model
Not what you're looking for?
According to the Miller and Modigliani model dividened policy is irrelevant. However, there are numerous factors in the real world that violate the MM assumptions. What are some of the reasons for favoring a high dividend policy and reasons for favoring a low dividend policy?
Purchase this Solution
Solution Summary
The solution answers the question below in great detail.
Solution Preview
Hello,
I hope you are doing great. Please find my response below. I have done my best to answer your question to the best of my ability. I hope you find the response excellent. Thanks and good luck.
As per Miller and Modigliani, dividend policy is irrelevant. However, this assumption only holds true in perfect markets (without taxes and symmetric information). There are a number of reasons why companies give out high or low ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.