Based on efficient market system with no taxes or issue cost

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Reference no: EM13948683

True or False

1. MM's dividend irrelevance proposition is based on an efficient market system with no taxes or issue costs.

2. According to the MM dividend irrelevance proposition, since investors do not need dividends to convert their shares to cash, they will not pay higher prices for firms with higher dividend payouts.

Reference no: EM13948683

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