Question: Two firms are virtually identical except for their capital structure are selling in the market at different values. According to M&M: a) One will be

Two firms are virtually identical except for their capital structure are selling in the market at different values. According to M&M:

a) One will be at a greater risk of bankruptcy

b) The firm with greater financial leverage will have higher value

c) Both firms should have the same value

d) The markets are inefficient

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