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8. Based on Modigliani-Miller Proposition 1 (which assumes, among other things, no personal or corporate income taxes and no bankruptcy costs), indicate which of the

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8. Based on Modigliani-Miller Proposition 1 (which assumes, among other things, no personal or corporate income taxes and no bankruptcy costs), indicate which of the following capital structures maximizes the value of the firm? Explain your answer. i. 100% Equity, 0% Debt ii. 75% Equity, 25% Debt iii. 50% Equity, 50% Debt iv. 25% Equity, 75% Debt v. 0% Equity, 100% Debt

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