Q86
Which of the following is / are assumption(s) underlying the Miller and Modigliani analysis?
A.
Capital markets are perfect
B.
Investors are assumed to be rational and behave accordingly
C.
There is no corporate or personal income tax
D.
All of the above.
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Capital markets are perfect, Investors are assumed to be rational and behave accordingly and there is no corporate or personal income tax are the assumptions underlying the Miller and Modigliani analysis.