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Modigliani and Miller's Proposition I states that in a perfect world with no market frictions: a. The market value of any firm is independent of

Modigliani and Miller's Proposition I states that in a perfect world with no market frictions:

a. The market value of any firm is independent of its capital structure

b. The market value of a firm' s debt is independent of its capital structure

c. The market value of a firm' s common stock is independent of its capital structure

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