1.0爱游戏体育 JargonsMegha M/author/author2What is Miller and Modigliani theory on Dividend Policy? definition, assumptions and criticisms - 爱游戏体育 Jargonsrich600338<blockquote class="wp-embedded-content" data-secret="NFE2RiMAOy"><a href="/miller-and-modigliani-theory-on-dividend-policy.html">Miller and Modigliani theory on Dividend Policy</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="/miller-and-modigliani-theory-on-dividend-policy.html/embed#?secret=NFE2RiMAOy" width="600" height="338" title="“Miller and Modigliani theory on Dividend Policy” — 爱游戏体育 Jargons" data-secret="NFE2RiMAOy" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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According to Miller and Modigliani Hypothesis or MM Approach, dividend policy has no effect on the price of the shares of the firm and believes that it is the investment policy that increases the firm’s share value. It is believed that, the shareholders are indifferent between the dividends and the capital gains, i.e., the increased value of capital assets.