Which of the following is not an assumption of Modigliani and Miller irrelevance theory?
A) No taxes
B) No transaction costs
C) No asymmetric information
D) No costs to financial distress
E) All of the above are assumptions of the Modigliani and Miller irrelevance theory

Question

Quizplus · Accepted Answer

All the options listed are assumptions of the Modigliani and Miller irrelevance theory, which assumes a perfect market with no taxes, transaction costs, asymmetric information, or costs to financial distress.

Which of the Following Is Not an Assumption of Modigliani