Question: Modigliani and Miller ( MM ) , in their second article, sook aceount of tuxcs, bankruptey, and other fictors that were assumed rany in their

Modigliani and Miller

(

),

in their second article, sook aceount of tuxcs, bankruptey, and other fictors that were assumed rany in their original article. Once they took account of all these assomptions, bey concladed that every firm has a unique optimal capital structure. Moreaver, a manager can wae the secood MM model to determine his or her firm's optimal debt ratio.

True

False

Modigliani and Miller ( MM ) , in their second

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