If we drop the assumption that there are no information or transaction costs, in addition to dropping

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If we drop the assumption that there are no information or transaction costs, in addition to dropping the no-tax assumption, then will the Modigliani and Miller model still suggest that the firm should take on greater proportions of debt in its capital structure? Explain.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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