The value of a firm is independent of its capital structure

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Reference no: EM131337026

1. What assumptions are required in deriving the proposition that a firm's cost of capital is independent of its capital structure?

2. What role does signaling play in the establishment of a firm's capital structure?

3. What is arbitrage? How is it used in deriving the proposition that the value of a firm is independent of its capital structure?

Reference no: EM131337026

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