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  3. Study Set
    Intermediate Financial Management Study Set 2
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    Exam 15: Capital Structure Decisions: Part I
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    If Miller and Modigliani Had Considered the Cost of Bankruptcy
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If Miller and Modigliani Had Considered the Cost of Bankruptcy

Question 8

Question 8

True/False

If Miller and Modigliani had considered the cost of bankruptcy, it is unlikely that they would have concluded that 100 percent debt financing is optimal for the firm.

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