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Author Question: In a perfect world of no taxes, which statement regarding MM propositions is true? (Read 90 times)

gboileau

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on: Aug 7, 2023
In a perfect world of no taxes, which statement regarding MM propositions is true?

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According to Proposition I, a firm is able to find its optimal capital structure.


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Proposition I states that the total firm value critically depends on capital structure. 


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According to Proposition II, changes in the capital mix of a firm will not affect the debt and equity values of the firm.


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Proposition II implies that an increase in leverage raises the risk of equity and thereby the required return on equity.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by gboileau on Aug 7, 2023

Asfa

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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gboileau

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

pratush dev

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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