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Which dividend irrelevance argument of mm model is based on

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Reference no: EM132919799

Problem 1:  Dividend irrelevance argument of MM Model is based on:

a.issue of bonus issue
b.Issue of debentures
c.Hedging
d.Arbitrage

Problem 2: Suppose that an investor can expect to

40,000 at the end of year 2

70,000 at the end of year 6

100,000 at the end of year 8

Compute his present (value) if his time preference is 12%.

a.108, 400
b.107, 740
c.102, 300
d.105, 700

Reference no: EM132919799

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