The Basic Lesson of M&M Theory Is That the Value

Multiple Choice

The basic lesson of M&M Theory is that the value of a firm is dependent upon the:

A) Capital structure of the firm.
B) Total cash flows of the firm.
C) Percentage of a firm to which the bondholders have a claim.
D) Tax claim placed on the firm by the government.
E) Size of the stockholders claims on the firm.