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Which of the following is not an assumption in the MM I (Miller Modigliani, 1958) model of Capital Structure: A. There are no taxes. B.

Which of the following is not an assumption in the MM I (Miller Modigliani, 1958) model of Capital Structure:

A. There are no taxes.

B. There are no brokerage (transaction) costs.

C. Investors and corporations can borrow and lend at the same rate.

D. Cost of equity does not change when capital structure changes.

E. There are no bankruptcy costs.

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