Multiple Choice
MM Proposition I,without taxes,assumes that
A) debt is riskless.
B) individuals and corporations can borrow at the same rate.
C) firms can borrow at the risk-free rate.
D) individuals and firms are taxed at the same rate thereby making taxes irrelevant.
E) all firms will prefer an unlevered capital structure.
Correct Answer:
Verified
Correct Answer:
Verified
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