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 firm's stock price for either model of dividends.
b. The firm's capital structure can affect its dividend payout ratio
c. Both models suggest that cash dividends, if retained and invested, would result in investments with NPVs = 0.
d. Both models suggest that how net income is divided between retained earnings and dividends can affect firm value.
e. Both models are similar in that they both suggest that dividends will be erratic.