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Given the original assumptions of Modigliani and Miller (which include that there are no corporate or personal taxes), the firms optimal capital structure is 100%
Given the original assumptions of Modigliani and Miller (which include that there are no corporate or personal taxes), the firms optimal capital structure is
- 100% debt
- 50% equity and 50% debt.
- Some specific capital structure that is not included in a, b, or c.
- Given the original assumptions, there is no optimal capital structure.
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
