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yaroslaw [1]
3 years ago
7

According to Modigliani and Miller, a firm's value is determined solely by the earning power and risk of its assets and that the

manner in which it splits its earnings stream between dividends and internally retained funds does not affect this value.
True or False?
Business
1 answer:
Varvara68 [4.7K]3 years ago
5 0

Answer:

True

Explanation:

Modigliani and Miller or MM hypothesis states that dividend policy of a firm plays no role in the determination of the market value of it's stock or the market value of the firm.

As per the theory, dividend policy of a firm is irrelevant and does not affect the value of the firm.

The theory maintains that under specific set of assumptions, the capital structure of a firm and it's composition does not play any role in determining the value of a firm and no capital structure can be termed as optimal.

It further states, the value of a firm is determined by capitalizing it's expected return with the firm's average cost of capital. Also, a firm cannot change the total value of it's securities by splitting it's cash flows into different streams such as dividends or retained earnings.

A firm's value is determined by a firm's real assets and not by it's issued securities.

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2 years ago
About ____ percent of worldwide stocks of tuna, cod, and other large ocean fishes have disappeared in the last 50 years.
ehidna [41]

About ninety percent of worldwide stocks of tuna, cod, and other large ocean fishes have disappeared in the last 50 years.

Despite being present in every ocean in the world, tuna and other fishes have started disappearing. The North Atlantic, South Atlantic, as well as the Mediterranean Sea, have the worst conditions for the majority of fish species.

Bluefin, albacore, and yellowfin tuna stocks have drastically decreased as a result of years of overfishing for American and European markets. Although the Atlantic fisheries is heavily regulated, illegal fishing off the shore of coastal seas persists, particularly close to Africa, where impoverished nations cannot afford the patrols required to execute the law.

However, tuna populations cod and other large fish oceans  are declining even in the world's largest oceans, and some face extinction due to the continuous pressure of intensive commercial fishing.

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8 0
1 year ago
What are some advantages of walmart purchasing established web businesses?.
marin [14]

Some advantages of walmart purchasing established web businesses are;

  • Will help to draw to the site many consumers.
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<h3>What is a web businesses?</h3>

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3 0
2 years ago
Think about something very important to you that you would like to accomplish 10 years from now. Write a short-term, medium-term
ki77a [65]

Answer:

Well it is different for everyone... but i will give you mine...

In 10 years from now i want to be a pilot in the air force. My short term goal would be to take the azvab... you only take it once. My medium term goal would be to keep up with pt (physical training). My long term goal would be to keep up with the ever changing technology that i will need to use in order for my job to be succsessful.

Explanation:

8 0
2 years ago
Headland Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $79,200. Headland determi
Allisa [31]

Answer:

The Journal Entry is as follows:

Loss on Impairment $8,400

Debt Investment ($8,400)

Explanation:

Given.

Carrying Value = $79,200

Decreased Value = $70,800

Differences = $79,200 - $70,800

Differences = $8,400

Since the loss in value is determined, uncollectible.

The required entry on the journal entry are the amount loss on impairment and the amount invested on debt.

The Journal Entry is as follows:

Loss on Impairment $8,400

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3 years ago
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