Multiple Choice
According to the basic capital structure theory proposed by Modigliani and Miller (MM) , when will a firm's value be maximum?
A) When it is financed entirely through equity
B) When it is financed 50 percent through debt and 50 percent through equity
C) When it is financed entirely through its retained earnings
D) When it is financed 100% through debt
E) When it is financed 50 percent through equity and 50 percent through its profits
Correct Answer:
Verified
Correct Answer:
Verified
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