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Author Question: The Modigliani and Miller hypothesis suggests that capital structure doesn't matter. All of the ... (Read 399 times)

shofmannx20

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on: Jul 10, 2018
The Modigliani and Miller hypothesis suggests that capital structure doesn't matter. All of the
  following conditions need to be met for this hypothesis to be true EXCEPT
 
  A) all corporate net income is paid out as dividends.
  B) corporate income is not subject to taxation.
  C) capital structure consists only of stocks and bonds.
  D) securities are traded in perfect or efficient markets.

Question 2

Floating lien agreements are the least secure form of inventory collateral.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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nekcihc358

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

TRUE


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