Question
The MM model with corporate taxes is a special case of the Miller model with personal taxes. If the personal tax rate on debt income
The MM model with corporate taxes is a special case of the Miller model with personal taxes. If the personal tax rate on debt income (Td) and the personal tax rate on stock income (Ts) are the same, the Miller model becomes the MM model with corporate taxes.
A. True
B. False
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Basic Finance An Introduction To Financial Institutions Investments And Management
Authors: Herbert B. Mayo, Michael J Lavelle
13th Edition
0357714741, 978-0357714744
