Describe the modigliani and miller proposition
Problem:
Question: Briefly describe the Modigliani and Miller Proposition I and discuss the important conditions that are required to prove it to be true. Are they realistic?
Note: Please describe comprehensively and provide step by step solution.
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If we incorporate Financial Distress and Bankruptcy Costs and also Taxes, then we have altered the fundamental assumptions of Modigliani and Miller.
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