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Basic Question 7 of 18
Modigliani and Miller's Proposition I states that:
B. The market value of a firm's debt is independent of its capital structure.
C. The market value of any firm is independent of its capital structure.
A. The market value of a firm's common stock is independent of its capital structure.
B. The market value of a firm's debt is independent of its capital structure.
C. The market value of any firm is independent of its capital structure.
User Contributed Comments 1
| User | Comment |
|---|---|
| sarath | Totoal market value of the firm = total values of the outsranding SECURITIES of the firm.. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain the Modigliani-Miller propositions regarding capital structure
CFA® 2024 Level I Curriculum, Volume 2, Module 6.