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?© BrainMass Inc. brainmass.com October 24, 2018, 10:17 pm ad1c9bdddf
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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 ...
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Capital Structure Policy: Theory and Practice of the Modigliani and Miller models of capital structure
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Explain the Modigliani and Miller models of capital structure both with and without corporate income taxes.
Specifically, explain the relationship between debt leverage and the value of the firm and between debt leverage and the cost of capital.View Full Posting Details