According to MM,in a World Without Taxes,the Optimal Capital Structure

question 3

True/False

According to MM,in a world without taxes,the optimal capital structure for a firm should approach 100 percent debt financing.

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Definitions:

Monistic

Monistic is an adjective describing any philosophy that posits a single, unified reality or substance as the basis of all existence, in contrast to dualistic or pluralistic theories.

Dualistic

A conceptual framework that divides something into two distinct and often opposing parts or aspects, such as mind and body in philosophy.

Mahayana Buddhism

A major branch of Buddhism that focuses on the path of a Bodhisattva and compassion towards all sentient beings.

Bodhisattva

(Sanskrit.) In Mahayana Buddhism, an enlightened person devoted to the enlightenment of others.