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With its perfect market assumptions, the Modigliani-Miller theory of capital structure states that: A. The optimal financing mix is all equity and no debt. B.

With its perfect market assumptions, the Modigliani-Miller theory of capital structure states that:

A.

The optimal financing mix is all equity and no debt.

B.

None of the above.

C.

The firms cost of capital can be maximized with all debt financing.

D.

Management cannot add value to a firm through its debt-equity mix choice.

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