According to the M&M propositions, in a perfect market which of the following statements is true?

a) The net present value of a firms projects should exceed the present value of the firms issued claims

b) The value of the firm is higher when financed with debt due to its lower cost

c) The value of the firm will be equal to the net present value of its underlying projects

d) The net present value of a firms projects will be higher if they are financed with debt since debt carries a lower cost Previous