Which of the Following is False? a) Modigliani and Miller’s

Answer for Which of the Following is False? a) Modigliani and Miller’s for $1 Only(Instant Download)

Modigliani

Which of the following is False?

a) Modigliani and Miller’s conclusions in the presence of taxation, agree with the common view which states that leverage would affect a firm’s value.

b) Leverage increases the risk of equity even when there is risk that the firm may default.

c) The expected return of equity increases in leverage, since investors require a higher expected return to compensate for the increased risk in asset return.

d) Both a) and c).

Price of Answer: Just US$1 only (Instant Download)

Buy Now
The safe, easier way to pay

Need Assistance…??  email us at [email protected].

If you need any type of help regarding Homework, Assignments, Projects, Case study, Essay writing, or anything else then just email us at [email protected].  We will get back to you ASAP. Do not forget to maintain the time frame you need your work to be done.

FIN 534 Week 8 Homework Chapter 14

FIN 534 Week 8 Homework Chapter 14 in $4.99 Only (Instant Download)FIN 534 Week 8 Homework Chapter 14

1. Which of the following statements about dividend policies is CORRECT?

a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the ―bird-in-the hand‖ effect.

b. One reason that companies tend to avoid stock repurchases is that dividend payments are taxed at a lower rate than gains on stock repurchases.

c. One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.

d. One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.

e. The clientele effect suggests that companies should follow a stable dividend policy.