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?
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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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