Under the MM Theorem,capital Structure Will Not Change the Total

question 44

Multiple Choice

Under the MM theorem,capital structure will not change the total value of a firm because:

• A)EPS is not affected by leverage.
• B)two firms with the same assets but different capital structures are not considered perfect substitutes.
• C)dividend policy is irrelevant.
• D)perfect substitutes should not sell at different prices in the same market.

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