In a Perfect World of No Taxes,what Happens If the Weighted

question 66

Multiple Choice

In a perfect world of no taxes,what happens if the weighted average cost of capital (WACC) is unaffected by the capital structure?

• A)MM proposition I holds.
• B)MM proposition II holds.
• C)SML is positively sloped.
• D)SML is negatively sloped.

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Definitions:

Psychotherapist

A professional who treats mental health issues by psychological rather than medical means, often through talk therapy.

Trivial

Of little importance or significance.

Sigmund Freud

A pioneering Austrian neurologist who developed psychoanalysis, a treatment for mental health issues that relies on conversational interactions between a psychoanalyst and the patient.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.