In their first venture into the optimal capital structure question,Nobel laureates Franco Modigliani and Merton Miller began with a very simple model and a hypothetical world of ________.
A)bankruptcy costs but no taxes
B)taxes but no bankruptcy
C)no taxes and no bankruptcy
D)both taxes and bankruptcy

Question

Quizplus · Accepted Answer

Modigliani and Miller's model assumed a hypothetical world with no taxes and no bankruptcy costs.

In Their First Venture into the Optimal Capital Structure Question,Nobel