Multiple Choice
M and M Proposition I states that
A) the value of a firm's assets and operations does not change with changes in the firm's capital structure.
B) the value of the firm is maximized when the WACC after-tax is minimized.
C) the cost of equity is a positive linear function of its capital structure.
D) the only risk relevant in measuring the cost of equity is business risk.
Correct Answer:
Verified
Correct Answer:
Verified
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