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Which of the following assumptions was not part of the original Modigliani and Miller Model? a. Income taxes are fixed. b. Securities trade in perfectly

Which of the following assumptions was not part of the original Modigliani and Miller Model?

a.

Income taxes are fixed.

b.

Securities trade in perfectly efficient capital markets.

c.

Rates for borrowing do not change regardless of the amount borrowed.

d.

Securities trade with no transaction costs.

e.

Rates for borrowing are the same for investors and companies.

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