Modigliani and Miller's First Article Led to the Conclusion That

question 27

True/False

Modigliani and Miller's first article led to the conclusion that capital structure is "irrelevant" because it has no effect on a firm's value.However,that article was criticized because it assumed that no taxes existed.MM then revised their original article to include corporate taxes,and this model led to the conclusion that a firm's value would be maximized if it used (almost)100% debt.

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Net New Jobs

The total number of jobs created by a business or sector minus the number of jobs lost, indicating overall employment growth.

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses through loans, grant programs, and counseling.

Office of Advocacy

A governmental entity that represents the views and concerns of small businesses before federal agencies and Congress.

Thomas Friedman

An American journalist and author known for his work on globalization, international affairs, and environmental issues.