Modigliani and miller mm won nobel prizes for their work on, Financial Management

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Modigliani and miller mm won nobel prizes for their work on

1. Modigliani and Miller (MM) won Nobel Prizes for their work on capital structure theory.

a. True

b. False

2. According to Modigliani and Miller, in a world without corporate income taxes, the use of debt has no effect in the firm’s value.

a. True

b. False

3. According to Modigliani and Miller (MM), in a world without taxes, the optimal capital structure for a firm is approximately 100% debt financing.

a. True

b. False

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Financial Management: Modigliani and miller mm won nobel prizes for their work on

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