Modigliani and Miller assuming perfect capital markets (no taxes) concluded:

Question 23 options:

	the value of a levered firm will equal the value of an unlevered firm.
	the value of a firm is dependent on the operating cash flows generated by business assets.
	the value of a levered firm will always be greater than the value of an unlevered firm as debt has a lower cost than equity.
	Both A and B.