Which of the Following Is NOT One of Modigliani and Miller's

Multiple Choice

Which of the following is NOT one of Modigliani and Miller's set of conditions referred to as perfect capital markets?

A) All investors hold the efficient portfolio of assets.
B) There are no taxes, transaction costs, or issuance costs associated with security trading.
C) A firm's financing decisions neither change the cash flows generated by its investments, nor do they reveal new information about them.
D) Investors and firms can trade the same set of securities at competitive market prices equal to the present value (PV) of their future cash flows.