Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Studies Foundation of Business Business Finance
The dividend-irrelevance theory of Miller and Modigliani depends on which one of the following relationships between investment policy and dividend policy.
1
Since dividend policy is irrelevant, there is no relationship between investment policy and dividend policy
2
The level of investment does not influence or matter to the dividend decision
3
Once dividend policy is set, the investment decision are residuals
4
The investment policy is set ahead of time and not altered by change in dividend policy