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financial management // help!! In 1958 Franco Modigliani and Merton. Miller (MM) published a set of research papers that revolutionized the theory of a corporation's

financial management // help!!
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In 1958 Franco Modigliani and Merton. Miller (MM) published a set of research papers that revolutionized the theory of a corporation's capital structure. In their first research paper, MM proposed a set of assumptions that, on the surface, may seens unirealistic, but these assumptions and Mit's algebraic approach provided the first significant attempt to study capital structure theory in a scientific fashion. The original assumptions that were used in MMis first study were changed by MM. and other researchers as the theory of capital structure evolved. Which of the following statements are assumptions that MM used in their initial model and research paper? Check all that aoply. Investors have different expectations about earnings and risk. Cash flows grow at an unpredictable rate. There are no taxes, either personal of cornorate. Stocks and bonds are traded in perfect marhets whiere there are no brokerage costs and all investors can borrow at the same rate. Consider the following statement about a firm's cacital structure: The firm's weighted average cost of caditat (WACC) is unaffected by its capital structure. Is the preceding statement consistent with the conclusians of Mocigliani and Maller's capital structure theory? No

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