19. Modigliani and Miller published impressive and influential research articles on the theory of Capital Structure. All corporations have equity, but not all corporations have debt in their capital structure. In the original M&M research, they made assumptions that led to a result that the proportions of debt and equity did not matter and did not affect the value of the firm. However, in real life, those underlying assumptions do not hold, and the result is that the proportions of debt and equity do matter and do affect the value of the firm. When adding debt or more debt to the capital structure is beneficial to a company, it is because of the effect caused by 20. Following Question 19: When adding debt or more debt to the capital structure is detrimental to a company, it is because of the increased potential for 21. Adding more debt to a corporation's capital structure (Answer either Increases or Decreases.) the company's leverage. 22. True or False: A company with high growth potential will tend to retain earnings and not pay out dividends to shareholders. In this case, the price of the stock and the capital gains enjoyed by shareholders both tend to increase more than for a company that pays out dividends. 23. True or False: A mature, low-growth company will likely pay out dividends to its shareholders, and some shareholders prefer to receive dividends