Modigliani miller proposition on capital structure

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Reference no: EM131597283

A. State the Modigliani Miller Proposition I (MM I) on Capital Structure.

B. Explain the proposition using your own words.

C. Show a numerical example to prove the above proposition.

D. State the factors that impact the cost of capital in real life scenarios, when we relax the assumptions of MM I.

Reference no: EM131597283

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