A Key Assumption of MM's Proposition I Without Taxes Is

question 70

Multiple Choice

A key assumption of MM's Proposition I without taxes is:

• A)that financial leverage increases risk.
• B)that individuals can borrow on their own account at rates less than the firm.
• C)that individuals must be able to borrow on their own account at rates equal to the firm.
• D)managers are acting to maximize the value of the firm.
• E)All of the above.

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