Multiple Choice
Two prominent finance researchers (Modigliani and Miller) showed that
A) the firm's optimal capital structure consists of approximately equal proportions of debt and equity
B) the value of the firm is independent of its capital structure in perfect capital markets with no income taxes
C) the firm's cost of capital is minimized when its capital structure consists of approximately equal proportions of debt and equity
D) the firm's cost of capital is maximized when its capital structure consists of approximately equal proportions of debt and equity
Correct Answer:
Verified
Correct Answer:
Verified
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