Question: C. (1) only D. (2) only According to Modigliani and Miller, which of the following conditions are strictly necessary for the cost of equity to

C. (1) only D. (2) only According to Modigliani and Miller, which of the following conditions are strictly necessary for the cost of equity to rise with increases in gearing) (1) The possibility of bankruptcy (2) Costs associated with bankruptcy A. Both (1) and (2) B. Neither (1) nor (2)

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