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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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