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Which of the following is not a perfect capital markets assumption? Please show (Add explanation for your answer ) a. There are no taxes. b.

Which of the following is not a perfect capital markets assumption? Please show (Add explanation for your answer )

a. There are no taxes.

b. No firm faces financial distress or bankruptcy.

c. Individuals can borrow or lend at the same rate as firms.

d. As insiders, managers have access to more information than investors regarding the future prospects of the firm

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