MM Showed That in a World Without Taxes, a Firm's

question 29

True/False

MM showed that in a world without taxes, a firm's value is not affected by its capital structure.

---

Definitions:

Capital Market

A financial market in which longer-term (at least one year) debt and equity securities are traded.

Securities And Exchange Commission

A U.S. government agency responsible for enforcing the laws governing the securities industry, including the stock and options exchanges.

Insider Trading Laws

Regulations that prohibit trading a public company's stock or other securities by individuals with access to non-public information.

Supervising

The act of overseeing and directing the work and performance of others, ensuring tasks are completed efficiently and effectively.