Question
13. Which one of the following is NOT assumed by Modigliani and Miller when they argued that capital structure does not affect firm value? A)
13. Which one of the following is NOT assumed by Modigliani and Miller when they argued that capital structure does not affect firm value?
A) Managers and outsiders have different information regarding a firms fundamentals.
B) Homogeneous expectations of a firms periodic cash flow
C) No transaction cost
D) No bankruptcy cost
E) Zero taxes.
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Introduction To Finance
Authors: Lawrence J Gitman, Jeff Madura
1st Edition
0201635372, 9780201635379
