List and briefly describe the three key assumptions in Modigliani and Millers Proposition 1 that are required

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List and briefly describe the three key assumptions in Modigliani and Miller’s Proposition 1 that are required for total firm value to be independent of capital structure.

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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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Question Posted: Jun 12, 2012 01:16 AM

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List and briefly describe the three key assumptions in Modigliani and Millers Proposition 1 that are required

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1 There are no taxes This assumption is necessary in order to avoid creating a tax benefit when usin...View the full answer

Fundamentals of corporate finance

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