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Which of the following is an assumption in the MM II ( Miller Modigliani, 1963 ) model of Capital Structure: There are no taxes. There

Which of the following is an assumption in theMM II (Miller Modigliani,1963) model of Capital Structure:

  • There are no taxes.
  • There are brokerage (transaction) costs.
  • Investors and corporations cannot borrow and lend at the same rate.
  • Cost of equity does not change when capital structure changes.
  • There are nobankruptcy costs.

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