[Latest News][6]

Affiliate Marketing Guides
Agriculture Business Ideas
Amazon Online Store Tips
Banking & Finance Tips
Blogging & Webmaster Guides
Bulk SMS Short Code Guides
Computer & IT Business Ideas
Education Business Ideas
Entrepreneurship Tips & Freebies
Facebook Autopilot & Tips
Fashion & Decoration Ideas
Financial Calculators
Fiverr Income Guides
Free SMS Text Messages
Google Adsense Tips
Health Business Opportunities
Inspirational Poems & Literature
Insurance & Risk Management
Job Search Tips
Mobile Phone Tips & Business
Motivational Quotes & Tips
Oil & Gas Business Ideas
Online Business Guides
Online Importation Business Guides
Small Scale Business Ideas
Social Media Income Guides
Start-Up Business Ideas
Transportation & Haulage Ideas
Web & Graphic Designing Ideas
Work-At-Home Business Ideas

Criticism of Modigliani And Miller MM approach in Dividend Theory

Criticism of Modigliani And Miller MM approach in Dividend Theory:

MM approach consists of certain criticisms also. The following are the major criticisms of MM approach.

1. MM approach assumes that tax does not exist. It is not applicable in the practical life of the firm.

finance
[Post Image Courtesy of Bajita111122 at FreeDigitalPhotos.net]

2. MM approach assumes that, there is no risk and uncertain of the investment. It is also not applicable in present day business life.

3. MM approach does not consider floatation cost and transaction cost. It leads to affect the value of the firm.

4. MM approach considers only single decrement rate, it does not exist in real practice.

5. MM approach assumes that, investor behaves rationally. But we cannot give assurance that all the investors will behave rationally.

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

2 comments

  1. Howdʏ! I realizе this is sort of off-topic but I needed to ask.
    Ɗoes opeгating a wеlⅼ-established websitе like үours require a laeǥe аmount of work?
    I'm brand new to blogging however I do write inn my diary everyday.
    I'd liқe tto start a blog so I wikll be able to share my own experience and views online.
    Plᥱase let me know iif you have any ideas or tips for new aspirinng blog owners.
    Appreciat it!

    ReplyDelete
  2. each time і used to read smaller artіcles
    thaat as well clear their motive, and that is also happening with this post which I am reading at this time.

    ReplyDelete

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Start typing and press Enter to search