In M&M's perfect world, their theorem's two main propositions are referred to as which of the following?
A) Active capital structure management
B) Passive capital structure management
C) Capital structure irrelevance assertion
D) Capital structure relevance assertion

Question

Quizplus · Accepted Answer

M&M's theorem, proposed by Modigliani and Miller, includes the capital structure irrelevance assertion as one of its main propositions, stating that under certain conditions, the value of a firm is unaffected by its capital structure.

In M&M's Perfect World, Their Theorem's Two Main Propositions Are