29. Modigliani and Miller Proposition 1 states that the capital structure decisions a firm makes will have no effect on the value of the firm if: 1. There are no taxes. 2. There are no information or transaction costs. 3. The real investment policy of the firm is not affected by its capital structure decisions 4. All of the above 24. Wholesale market where firms' new securities are issued and sold for the first time is called 1. Secondary market 2. Auction market 3. Primary market 4. Broker market