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Irrelevance capital structure theory

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Reference no: EM13934939

The MM irrelevance capital structure theory proved that a firm's value is unaffected by its capital structure. But their study was based on some strong assumptions that: _____

There are no brokerage costs and taxes

EBIT is not affected by the use of debt.

There are no bankruptcy costs and agency costs.

There is no asymmetric information problem, and all investors can borrow at the same rate as corporations.

All of above.

Reference no: EM13934939

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