The correct answer is: C. Modigliani Miller.
Modigliani and Miller (MM) were two economists who published a paper in 1958 that argued that the value of a company is not affected by its dividend policy. They argued that investors can always create their own dividend policy by buying or selling shares of the company. This is known as the MM dividend irrelevance theorem.
A. J. E. Walter was an American economist who published a paper in 1956 that argued that dividends are relevant in determining the value of a company. He argued that investors prefer to receive dividends rather than capital gains. This is known as the Walter dividend relevance theory.
B. Ezra Solomon was an American economist who published a paper in 1955 that argued that dividends are relevant in determining the value of a company. He argued that dividends provide liquidity to investors and that they can be used to signal management’s confidence in the company’s future.
D. M. J. Gordon was an American economist who published a paper in 1959 that argued that dividends are relevant in determining the value of a company. He argued that dividends provide a stream of income to investors and that they can be used to reduce the risk of the company’s stock.