According to Modigliani and Miller, in a perfect market the total value of the firm will be Group of answer choices a. if the firm uses 50% debt and 50% equity financing b. higher when debt is used...

According to Modigliani and Miller, in a perfect market the total value of the firm will be

Group of answer choices

a. if the firm uses 50% debt and 50% equity financing

b. higher when debt is used since the cost of debt is lower than the cost of equity

c. higher when equity is used since the firmʹs shareholders are exposed to less risk than if debt is used

d.the same regardless of the firmʹs choice of capital structure

Jun 03, 2022

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