excluding announcement effects which of the following statements suggest the res

Question

excluding announcement effects which of the following statements suggest the residual dividend model is similar to the MM dividend irrelevance model

a) cash dividends can reduce long-run capital appreciation of firm value and the firms stock price for either modelf of dividends
b)the firms capital structure can affects its dividend payout ratio
c)both models suggest that how net income is divided between retained and dividends affect firm value
d) both models suggest that how net income is divided between retained earnings and dividends can affect firm value
e) bothmodels are similary in that they both suggest that divideds will be erratic

Explanation / Answer

it is option c)both models suggest that how net income is divided between retained and dividends affect firm value

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