A key assumption of MM's Proposition I without taxes is:
A)that ﬁnancial leverage increases risk.
B)that individuals can borrow on their own account at rates less than the ﬁrm.
C)that individuals must be able to borrow on their own account at rates equal to the ﬁrm.
D)managers are acting to maximize the value of the ﬁrm.
E)All of the above.

Question

Quizplus · Accepted Answer

The Answer is C

A Key Assumption of MM's Proposition I Without Taxes Is