Which of the following best describes the pure MM model? A.In a world with bankruptcy, firms should
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Question:
Which of the following best describes the pure MM model?
A.In a world with bankruptcy, firms should max out on their borrowing capacity
B.In a world without bankruptcy, nearly 100% debt is optimal
C.In a world without bankruptcy, the objective of the firm should be to take maximum advantage of the interest tax shield that is "part and parcel" of financial leverage.
D.Both B and C
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