According to the Original Approach of Modigliani and Miller (M&M),a

question 102

Multiple Choice

According to the original approach of Modigliani and Miller (M&M) ,a firm's value is:

• A) unaffected by its capital structure.
• B) positively related to its use of debt.
• C) negatively related to its use of debt.
• D) positively related to its use of debt,but only up to some maximum debt/equity mix.