Understanding Dividend Irrelevance Theory

ABC Corp is a publicly traded company that has consistently paid dividends to its shareholders. Recently, the management is considering changes to their dividend policy. They want to understand how their dividend decisions will affect their stock price and shareholder wealth.

According to the dividend irrelevance theory proposed by Miller and Modigliani, dividend policy has no effect on the firm's value in a perfect market. This theory suggests that shareholders do not prefer dividends over capital gains, and therefore, the firm's value is determined by its investment decisions rather than its dividend policy.

Based on this background, which of the following statements aligns with the key insight of the dividend irrelevance theory?