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5 Which of the following statements is correct?
A A bonus issue can be used to raise new equity finance
B A share repurchase scheme can increase both earnings per share and gearing
C Miller and Modigliani argued that the financing decision is more important than the dividend decision
D Shareholders usually have the power to increase dividends at annual general meetings of a companyMy answer was B. I think I saw somewhere that the correct answer is C.
Ok. Thanks. This means my MCQ grade goes up to 34 out of 40. I m so grateful to you Open tuition for helping me pass the MCQ. Hopefully the whole exam on that dreaded day on 8 Feb 2015.
Which of the following statements is correct?
A A bonus issue can be used to raise new equity finance
B A share repurchase scheme can increase both earnings per share and gearing
C Miller and Modigliani argued that the financing decision is more important than the dividend decision
D Shareholders usually have the power to increase dividends at annual general meetings of a companyI know option B is correct but Can you please help me understand why option C is incorrect because M&M argued that dividend are irrelevant?.
thank you
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