Modgliani and Miller's Mathematical Model Included a Number of Restrictions

question 137

Multiple Choice

Modgliani and Miller's mathematical model included a number of restrictions on the behavior of firms and individuals that made the model not very realistic.   Those restrictions included: ​

• A)The assumption that there are no income taxes. ​
• B)The assumption that securities trade in perfectly efficient capital markets in which there are no transactions costs. ​
• C)The assumption that investors and firms can borrow as much as they want at the same rate. ​
• D)All of the above​
• E)A & B only​
• F)B & C only​

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Definitions:

Knowledge Management Systems

Technological systems designed to capture, organize, and disseminate knowledge within an organization to improve efficiency, creativity, and decision-making.

Executive Dashboards

A visual tool that provides executives and other stakeholders with a concise overview of their organization's key performance indicators (KPIs) and metrics.

Receptive Audience

An audience that is open and willing to receive and consider the information or message presented to them.

Open Minded

Willingness to consider different ideas or opinions without prejudice.