Question 16 (: Which of the following statements is TRUE about the Modigliani and Miller Theory regarding dividend policy ? Shareholders are indifferent between receiving a capital gain on their...

Extracted text: Question 16 (: Which of the following statements is TRUE about the Modigliani and Miller Theory regarding dividend policy ? Shareholders are indifferent between receiving a capital gain on their shares or dividend income Companies should invest in all available positive NPV projects before paying out a dividend Investors in a perfect market may see the cutting of dividends as a bad sign Some investors liquidity requirements mean that they will respond badly to a cut in dividends.