The Modigliani-Miller model of capital structure begins with the simple assumption that the investing decision and financing decision of a firm are inseparable

Indicate whether the statement is true or false.

Answer: FALSE
Explanation: The Modigliani-Miller model of capital structure begins with the simple assumption that the investing decision and financing decision of a firm are SEPARABLE.

Business

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When those most likely to produce the outcome insured against are the ones who purchase insurance, insurance companies are said to face the problem of ________

A) fraudulent claims B) moral hazard C) adverse selection D) pecuniary purchases

Business

If production exceeds units sold, which of the following statements is correct?

A) The same operating income will result under both a variable costing and absorption costing income statement. B) A higher operating income will result under a variable costing income statement. C) A higher operating income will result under an absorption costing income statement. D) A lower operating income will result under an absorption costing income statement.

Business