Question
The difference between the M&M theory Case I (no taxes no bankruptcy costs) and M&M Case II (taxes no bankruptcy costs) is The relationship between
The difference between the M&M theory Case I (no taxes no bankruptcy costs) and M&M Case II (taxes no bankruptcy costs) is
The relationship between cost of equity and leverage linear in Case I and non-linear in Case II
Debt is more important according to Case I
Case I does not consider the advantages of debt but Case II only considers the advantages of debt
Case I has an optimal capital structure while Case II does not
Cost of equity increases with cost of equity in Case I only
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
