Irrelevance theory.
Explain briefly the ideas behind the dividend irrelevance theory.
What did Modigliani and Miller assume about taxes and brokerage
costs when they developed their dividend irrelevance theory?
Why did MM refer to the Gordon-Lintner dividend argument as the
bird-in-the-hand fallacy?
Why do some investors prefer high-dividend-paying stocks?
Why might other investors prefer low-dividend-paying stocks?
