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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 ...

Solution provided by:
Rachel Kozicki, PhD (IP)
Education
  • BA, Ashford University
  • MBA, Ashford University
  • Post-Master's Certificate, Northcentral University
  • PhD (IP), Northcentral University
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