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Capital Structure Is Irrelevant If

question 36

Multiple Choice

Capital structure is irrelevant if
I.capital markets are efficient;
II.each investor can borrow/lend on the same terms as the firm;
III.there are no tax benefits to debt


Definitions:

Social Trap

Situations where individuals or groups engage in behaviors that are beneficial in the short term but detrimental in the long term, often leading to collective negative outcomes.

Simulation Game

A video game or computer game that replicates real-life activities, systems, or environments for training, research, or entertainment purposes.

Competitive Choice

The concept involves selecting alternatives based on a competitive framework where the best option is chosen through comparison and evaluation against others.

Mixed-motive

Refers to situations or games in which participants have both shared and conflicting interests with each other.

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