In their famous articles on the cost of capital, corporation finance and the theory of investment, Modigliani and Miller made each of the following assumptions EXCEPT
A) equal access to bid and ask prices
B) homogeneous investor expectations
C) homogeneous business risk classes
D) perpetual cash flows
E) rational investors

Question

Quizplus · Accepted Answer

Modigliani and Miller did not make an assumption about equal access to bid and ask prices.

In Their Famous Articles on the Cost of Capital, Corporation