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Under the MM Theorem,capital Structure Will Not Change the Total

Question 44

Multiple Choice

Under the MM theorem,capital structure will not change the total value of a firm because:


A) EPS is not affected by leverage.
B) two firms with the same assets but different capital structures are not considered perfect substitutes.
C) dividend policy is irrelevant.
D) perfect substitutes should not sell at different prices in the same market.

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