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According to MM, which of the following is correct? a. MM shows that in a world with taxes, a firms maximum capital structure would be

According to MM, which of the following is correct?

a.

MM shows that in a world with taxes, a firms maximum capital structure would be almost 50% debt. c. MM shows that in a world without taxes, a firms sub-optimal capital structure would be almost 100% debt.

b.

MM shows that in a world without taxes, a firms optimal capital structure would be almost 100% debt.

c.

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d.

MM shows that in a world with taxes, a firms optimal capital structure would be almost 100% debt.

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