1. MANAGEMENT OF CORPORATE CAPITAL.
- Author
-
Gordon, M.J.
- Subjects
CORPORATE finance ,CAPITAL costs ,DIVIDENDS ,STOCK prices ,ECONOMICS - Abstract
In two papers and in a recent book I have presented theory and evidence which lead to the conclusion that a corporation's share price (or its cost of capital) is not independent of the dividend rate. As you may know, MM (Modigliani and Miller) have the opposite view, and they argued their position at some length in a recent paper.3 Moreover, the tone of their paper made it clear that they saw no reasonable basis on which their conclusion could be questioned. Since they were so sure of their conclusion, it would seem advisable for me to review carefully my thinking on the subject, and this meeting appears to be a good time and place to do so. [ABSTRACT FROM AUTHOR]
- Published
- 1963