Question
In a world with no taxes and no bankruptcy, what does the M&M Proposition 1 say? A. Firm value increases with capital structure B. Capital
In a world with no taxes and no bankruptcy, what does the M&M Proposition 1 say?
A. Firm value increases with capital structure
B. Capital structure does not affect firm value
C. None of the other responses
D. In the short-run, financing choices matter for firm value
E. The cost of debt increases with leverage
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
