A limitation of the MM analysis in the absence of taxes is that:
A)risky debt is not considered.
B)the possibility of default on debt is not considered.
C)there is no cost associated with default on debt.
D)only risk-free debt is considered.

Question

Quizplus · Accepted Answer

The Answer of A limitation of the MM analysis in the absence of taxes is that:
A)risky debt is not considered.
B)the possibility of default on debt is not considered.
C)there is no cost associated with default on debt.
D)only risk-free debt is considered.

A Limitation of the MM Analysis in the Absence of Taxes