theory that states a firm's dividend policy has no effect on either its value or its cost of capital. Under a stringent set of assumptions, they proved that a firm's value is determined only by its basic earning power and its business risk. In other words, the value of the firm depends only on the income produced by its assets, not on how that

Markets and competition in a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers . true or false: the market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets. true false