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2. a. Who are Modigliani and Miller (MM? List the assumptions of MM's no-tax (1958) model. What were the two main propositions MM developed in

2. a. Who are Modigliani and Miller (MM?

  1. List the assumptions of MM's no-tax (1958) model.
  2. What were the two main propositions MM developed in their no-tax model? State the propositions algebraically and discuss their implications.
  3. Describe briefly how MM proved their propositions.

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