Question
According to the Modigliani-Miller theory, both the expected return on debt and the expected return on equity of a company increase as the debt-equity ratio
According to the Modigliani-Miller theory, both the expected return on debt and the expected return on equity of a company increase as the debt-equity ratio increases. Why can the companys cost of capital remain constant?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
