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    M & M Proposition I

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    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

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    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 ...

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