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

question 10

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.

---

Definitions:

Linear Regression Equation

The linear regression equation is a mathematical formula used to predict the value of a dependent variable based on one or more independent variables, following a linear relationship.

Slope

In mathematics, the steepness or incline of a line, indicating the rate of change between two variables.

Intercept

In the context of a linear equation, the value at which the line crosses the y-axis when all independent variables are set to zero.

Linear Regression Equation

An equation that describes the relationship between a dependent variable and one or more independent variables using a straight line.