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Identify the true statement

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Identify the TRUE statement below:

a. Miller and Modigliani hypothesised that dividend policy has a significant impact on shareholder wealth, as it involves a trade-off between higher or lower dividends and issuing or repurchasing ordinary shares.

b. Under the imputation tax system, dividends are only taxed once at the company tax rate.

c. Dividends reduce agency costs by providing an internal source of financing and increasing free cash flows.

d. Share buybacks are a means by which a company can improve its performance measures, particularly earnings per share and net assets per share.

Reference no: EM132999295

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