Modigliani and Miller Concluded That There Is No Point in Adjusting

question 47

Multiple Choice

Modigliani and Miller concluded that there is no point in adjusting the debt or equity proportions in choosing the capital structure of the firm, but which two important factors did they ignore?

• A) Taxation
• B) Financial distress
• C) Inflation
• D) Interest

Understand the basic components and terminology of factorial design.

Identify the number of conditions in various factorial designs.

Determine the number of possible main effects and interactions in factorial designs.

Differentiate between repeated measures, independent groups, and mixed factorial designs.

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