Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?

Finance by Geoffrey

Modigliani and Miller

Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?

Define the following terms: inventory conversion period, average
collection period, and payables deferral period. Explain how these
terms are used to form the cash conversion cycle.

How would a reduction in the cash conversion cycle increase
profitability?

What are some actions a firm can take to shorten its cash conversion
cycle?