Nobel prizes for their work on capital structure theory

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Reference no: EM131597862

1. Modigliani and Miller (MM) won Nobel Prizes for their work on capital structure theory.

a. True

b. False

2. According to Modigliani and Miller, in a world without corporate income taxes, the use of debt has no effect in the firm’s value.

a. True

b. False

3. According to Modigliani and Miller (MM), in a world without taxes, the optimal capital structure for a firm is approximately 100% debt financing.

a. True

b. False

Reference no: EM131597862

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