Business Studies, asked by hmnnpdezoysa, 10 months ago

difference between Relevant Theory and Irrelevant Theory

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Answered by koushikmkj

Answer:

There are no taxes:- No difference between tax rates on dividends and capital gains. 3. The firm has a fixed investment policy which will not change. ... Hence, the division of earnings between dividends and retained earnings is irrelevant from the point of view of shareholders.

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