In a World with No Taxes,Modigliani and Miller (MM)show That

question 49

True/False

In a world with no taxes,Modigliani and Miller (MM)show that a firm's capital structure does not affect its value.However,when taxes are considered,MM show a positive relationship between debt and value,i.e. ,the firm's value rises as it uses more and more debt,other things held constant.

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A right considered to be essential for the liberty or well-being of individuals, often protected by law.

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The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

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