The Original Form of the Modigliani and Miller Capital Structure

question 82

Multiple Choice

The original form of the Modigliani and Miller Capital Structure Theorem

• A) ignores the effect of taxes.
• B) ignores the relationship between firm value and cost of capital.
• C) ignores transaction costs.
• D) both A and C are true.

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Definitions:

Norepinephrine

A neurotransmitter involved in arousal and the regulation of mood, also known as noradrenaline.

Appetite

The natural desire to satisfy a bodily need, especially for food.

Dopamine

A neurotransmitter that plays several important roles in the brain and body, including movement, motivation, and the reinforcement of rewarding behaviors.

Reward System

A motivational tool used within organizations where employees are recognized and rewarded based on their performance or achievements.