Which Three of the Following Are Miller and Modigliani's Key

question 17

Multiple Choice

Which three of the following are Miller and Modigliani's key assumptions?

• A) There are no taxes or transaction costs.
• B) Investors tend to prefer dividends to capital gains.
• C) All investors can borrow and lend at the same interest rate.
• D) All investors have free access to all relevant information.

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Definitions:

Secondary Reinforcer

A reinforcer that acquires its positive value through an organism’s experience; a secondary reinforcer is a learned or conditioned reinforcer.

Positive Value

Something that is considered beneficial, desirable, or of worth according to individual or societal standards.

Organism's Experience

The subjective events and phenomena that occur within the life of a living entity.

Negative Reinforcement

A behavioral learning concept where the removal of an undesirable stimulus strengthens a behavior.