A Key Assumption of MMs Proposition I (No Taxes) Is

Multiple Choice

A key assumption of MMs Proposition I (no taxes) is:

A) that financial leverage increases risk.
B) that individuals can borrow on their own account at rates less than the firm.
C) that individuals must be able to borrow on their own account at rates equal to the firm.
D) managers are acting to maximize the value of the firm.