Explore BrainMass

Explore BrainMass

    M & M Proposition I

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which is not an assumption underlying M & M proposition I?
    1. No arbitrage
    2. No taxes
    3. Corporate investments are risk-free
    4. Symmetric information

    © BrainMass Inc. brainmass.com June 4, 2020, 3:33 am ad1c9bdddf

    Solution Preview

    M & M Proposition I is a capital-structure theory that states in a perfect market, what type of capital structure a company uses to finance its operations does not matter and that the market value of a firm is independent ...