Question: Explain the difference between an ordinary annuity and an annuity due. The optimal capital structure: a. depends on a theory developed by Modigliani and Miller.

  1. Explain the difference between an ordinary annuity and an annuity due.
  2. The optimal capital structure:

a. depends on a theory developed by Modigliani and Miller.

b. maximizes the current reward to the shareholders.

c. depends on the risk tolerance of the management.

d. depends on the risk tolerance of the shareholders.

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