Under the Modigliani and Miller Dividend Irrelevance Argument

Under the Modigliani and Miller dividend irrelevance argument:

A) dividend policy is a trade-off between cash raised from new operations and new share issues whilst paying dividends.
B) dividend policy is a trade-off between cash raised from new operations and investment outlays whilst paying dividends.
C) dividend policy is a trade-off between retaining profit and making new share issues whilst paying dividends.
D) dividends are paid to maximise shareholder wealth.

Correct Answer:

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