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Question: modigliani and miller assuming perfect capital markets no taxes concluded...

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Modigliani and Miller assuming perfect capital markets (no taxes) concluded:

 
Question 23 options:

the value of a levered firm will equal the value of an unlevered firm.

the value of a firm is dependent on the operating cash flows generated by business assets.

the value of a levered firm will always be greater than the value of an unlevered firm as debt has a lower cost than equity.

Both A and B.

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