Which of the following is not a perfect capital markets assumption? a. There are no taxes. b.

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Which of the following is not a perfect capital markets assumption?

a. There are no taxes.

b. No firm faces financial distress or bankruptcy.

c. Individuals can borrow or lend at the same rate as firms.

d. As insiders, managers have access to more information than investors regarding the future prospects of the firm.

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Financial Management Concepts and Applications

ISBN: 978-0132936644

1st edition

Authors: Stephen Foerster

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Question Posted: May 24, 2017 09:11 AM

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Which of the following is not a perfect capital markets assumption? a. There are no taxes. b.

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Answer is d With regard to Insider trading where an in...View the full answer

Financial Management Concepts and Applications

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