Understanding Dividend Policy Theories

In the context of dividend policy theories, consider the argument made by Modigliani and Miller. According to their hypothesis, under ideal market conditions with no taxes and no transaction costs, a firm's dividend policy is irrelevant to its value. This theory challenges traditional perspectives on how dividends influence investor behavior and the overall valuation of the firm.

Based on this theory, which of the following statements best captures the essence of their view on dividends?