According To Modigliani And Miller, In A World Without Taxes

According to modigliani and miller, in a world without taxes

Answer:

According to Modigliani and Miller (MM), in a world withouttaxes the optimal capital structure for a firm is approximately 100% debt financing. … According to Modigliani and Miller (MM), in a world withoutcorporate income taxes the use of debt has no effect on the firm’s value.

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