Question: Explain Modigliani and Millers argument that hedging is irrelevant. What are the most likely violations of Modigliani and Millers assumptions in actual markets?

Explain Modigliani and Miller’s argument that hedging is irrelevant. What are the most likely violations of Modigliani and Miller’s assumptions in actual markets?

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Modigliani and Miller argued that a corporations financial policies such as issuing debt hedging foreign exchange risk and other purely financial risk ... View full answer

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