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How many statements below are correct about the Modigliani - Miller theorem? ( 5 points ) i . The theorem is not an exact description
How many statements below are correct about the ModiglianiMiller theorem? points
i The theorem is not an exact description of reality.
ii The theorem provides a benchmark to understand how the capital structure could affect
WACC.
iii. The theorem implies that firms have benefited from financing with debt due to a higher
required rate of return on debt compared with equity.
iv The value of the firm is not affected by its capital structure under any assumptions.
a zero statements
b one statement
c two statements
d three statements
e four statements.
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