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    Financial Management Theory and Practice Study Set 4
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    Exam 15: Capital Structure Decisions
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    If Miller and Modigliani Had Incorporated the Costs of Bankruptcy
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If Miller and Modigliani Had Incorporated the Costs of Bankruptcy

Question 29

Question 29

True/False

If Miller and Modigliani had incorporated the costs of bankruptcy into their model, it is unlikely that they would have concluded that 100% debt financing is optimal.

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