MM Proposition I Without Taxes Proposes That

question 64

Multiple Choice

MM Proposition I without taxes proposes that:

• A)the value of an unlevered firm exceeds that of a levered firm.
• B)there is one ideal capital structure for each firm.
• C)leverage does not affect the value of the firm.
• D)shareholder wealth is directly affected by the capital structure selected.
• E)the value of a levered firm exceeds that of an unlevered firm.

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