modigliani and miller argued that each shareholder can construct his or her own dividend policy. this statement is: false true

The statement "Modigliani and miller argued that each shareholder can construct his or her own dividend policy. this statement is True" Option A

What is dividend policy?

Generally, A company's dividend policy is the policy it follows when determining the structure of the dividends it pays out to shareholders. In the opinion of some experts, the dividend policy is theoretically immaterial due to the fact that investors may sell a piece of their portfolio or shares if they want more capital.

The concept of dividend policy refers to financial rules that determine whether a company will pay a cash dividend in the here and now or if it will pay an enhanced dividend at a later time.

When it comes to the state of your company's finances, one of the most significant decisions you can make is to formulate a dividend policy and implement it. It generates goodwill among shareholders, increases demand for equities, and conveys information about the financial soundness and worth of your organization.

In conclusion, This is the assertion, "Both Modigliani and Miller contended that each shareholder is free to create their own dividend policy. This assertion is indeed correct." Alternative A