Question
Which of the following statements BEST reflects Modigliani & Miller (M & M) Proposition I, with no taxes and no costs of financial distress? A.
Which of the following statements BEST reflects Modigliani & Miller (M & M) Proposition I, with no taxes and no costs of financial distress?
A. A financial manager cannot increase the value of a firm by changing its capital structure.
B. Debt increases the risk of equity.
C. Firms should use 100% debt to take advantage of the tax shield.
D. All of the above.
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
6th Edition
125991965X, 978-1259919657
