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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