Modigliani and Miller (M&M) Proposition I states:
A) overall market value of the firm = market value of equity - market value of debt.
B) overall market value of equity = market value of the firm+ market value of debt.
C) overall market value of the firm = market value of equity + market value of debt.
D) overall market value of debt = market value of equity + market value of the firm.
C
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An improper representation made by an agent without the permission of the principal will NOT expose the principal to any liability.
a. true b. false
Which of the following is a characteristic of an amortized or level payment mortgage?
A. The early payment are mostly interest B. The early payments are mostly principal C. Each monthly payment increases and the balance decreases D. With each monthly payment, the interest increases and the balance decreases.