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Which of the following is NOT an assumption of the M&M Model? a. The business risk is equal among all firms having the equivalent operational
Which of the following is NOT an assumption of the M&M Model?
a. | The business risk is equal among all firms having the equivalent operational condition | |
b. | There is no conflict of interest between equity shareholders and debt holders. | |
c. | The insiders and outsiders of the firm share the same information about the company. | |
d. | All investors expect the same and make identical choices in a given situation. | |
e. | D/E ratio is constant with constant cost of equity and constant cost of debt. |
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