The Modigliani and Miller propositions, when the no-tax assumption is relaxed, suggest that the firm should finance

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The Modigliani and Miller propositions, when the no-tax assumption is relaxed, suggest that the firm should finance itself with as much debt as possible. Taking this suggestion to the extreme, is it even possible to finance a firm with 100 percent debt and no equity? Why or why not?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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