Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Finance Capital budgeting decisions Dividend decision
The MM hypothesis of the irrelevance of dividends is based on which of the following critical assumptions?
A. Investors are able to forecast future prices and dividends with certainty
B. The firm has a given investment policy which does not change
C. All financing is done through retained earnings
D. There are no taxes
E. Perfect capital markets in which all investors are rational
Choose the correct answer from the options given below:
1
A, B and C only
2
C, D and E only
3
A, B, D and E only
4
B, C, D and E only