The Modigliani-Miller (M&M)theorem States That

question 23

Multiple Choice

The Modigliani-Miller (M&M) theorem states that:

• A)in an efficient market without taxes and bankruptcy costs, the value of a firm depends upon the firm's capital structure.
• B)in an efficient market without taxes and bankruptcy costs, the value of a firm does not depend upon the firm's capital structure.
• C)in an efficient market without taxes and bankruptcy costs, the value of a firm does not depend upon the firm's cost of capital.
• D)none of these.