Dividend irrelevancy theory

Hello Tutor , below is the sentences I extract from the textbook which I don't really understand. Its said it will no difference for the shareholder whether is financing from outside or cut in the dividend to a project . 1)If the additional outside finance is a loan, why the value of the share will reduce? 2)why the reduction in the value of the share = dividend paid? Thank you. "M&M's theory states that provided a company is investing in positive NPV projects, it will make no difference to the shareholder (and share price) whether the projects are funded via a cut in dividends or by obtaining additional funds from outside sources. As a result of obtaining outside finance instead of using retained earnings, there would be a reduction in the value of each share. However, M&M argued that this reduction would equal the amount of the dividend paid, thereby meaning shareholder wealth was unaffected by the financing decision."