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December 15, 2022

List the three assumptions that lie behind the Modigliani-Miller theory in a world without taxes. Are these assumptions reasonable in the real world? Explain.

DQ1 List the three assumptions that lie behind the Modigliani-Miller theory in a world without taxes. Are these assumptions reasonable in the real world? Explain.

DQ2 Is there an easily identifiable debt–equity ratio that will maximize the value of a firm? Why or why not?

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