According to the Modigliani-Miller theory, and are ways to raise funds.

Question

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According to the Modigliani-Miller theory, stocks and bonds are equally good ways to raise funds as they have no impact on the value of the firm. The theory assumes perfect capital markets and no taxes, so in that situation, the way a firm finances its investments would have no effect on the value of the firm. Therefore, choosing either stocks or bonds would be equally good for raising funds.

According to the Modigliani-Miller Theory, and Are Ways to Raise