Question

Explain the Modigliani-Miller hypothesis of dividend irrelevance?​

Answer 1

Answer:

Modigliani – Miller theory is a major proponent of 'Dividend Irrelevance' notion. According to this concept, investors do not pay any importance to the dividend history of a company and thus, dividends are irrelevant in calculating the valuation of a company.

Answer 2

Explanation:

Modigliani – Miller theory is a major proponent of 'Dividend Irrelevance' notion. According to this concept, investors do not pay any importance to the dividend history of a company and thus, dividends are irrelevant in calculating the valuation of a company.