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

question 28

True/False

Modigliani and Miller's first article led to the conclusion that capital structure is extremely important,and that every firm has an optimal capital structure that maximizes its value and minimizes its cost of capital.

---

Definitions:

Implicit Attitudes

Unconscious beliefs or feelings towards people, objects, or concepts that can influence behavior and perceptions.

Explicit Attitudes

Beliefs or feelings about people, objects, or ideas that individuals are consciously aware of and can easily report.

Schema Mode

A mental framework that helps organize and interpret information, affecting how situations are perceived and responded to.

Cognitive System

The mental processes involved in perception, memory, judgement, and reasoning.