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Q. Show the Supposition of MM Hypothesis?
Supposition of MM Hypothesis:-
(i) There are ideal capital markets.
(ii) Investors act rationally.
(iii) Information regarding the company is available to all without any cost
(iv) There are no floatation as well as transaction costs
(v) No investor is large sufficient to influence the market price of shares.
(vi) There are no taxes
(vii) The firm has inflexible investment policy
(viii) There is no risk or else uncertainty in regard to the future profits of the firm.
Q. What is Investment Decision ? Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or projects in
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