MM shows that in a world without taxes,a firm's value is not affected by its capital structure.

Name: MM shows that in a world without taxes,a firm's value is not affected by its capital structure.
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In the absence of taxes, MM theory asserts that the value of a firm is not impacted by its capital structure as investors would be indifferent between financing methods. Therefore, the firm's value would remain constant regardless of the proportion of debt and equity used to finance its operations.

MM Shows That in a World Without Taxes,a Firm's Value