Which of the following is NOT one of M&M's perfect capital market assumptions?
A)There are no taxes.
B)Individuals must borrow (or lend)at the same rate at which a firm can borrow.
C)There is no asymmetric information in the market place.
D)There are no costs of bankruptcy.

Question

Quizplus · Accepted Answer

M&M's perfect capital market assumptions include no taxes, no asymmetric information, and no costs of bankruptcy. However, the assumption that individuals must borrow (or lend) at the same rate as firms is not included.

Which of the Following Is NOT One of M&M's Perfect