According to Modigliani and Miller (MM),in a World Without Taxes

question 36

True/False

According to Modigliani and Miller (MM),in a world without taxes the optimal capital structure for a firm is approximately 100% debt financing.

---

Definitions:

Argument

A set of arguments or justifications presented to convince others of the legitimacy or correctness of a particular idea or claim.

Valid

A term indicating that an argument or statement logically follows from the given premises.

Argument

A set of statements or propositions, where some serve as premises and one as the conclusion, intended to demonstrate the truth of the conclusion.

Implicit Propositions

Propositions that are not directly stated but implied within an argument or statement.