How will a firm go about determining its ‘optimal capital structure’? State three assumptions of Modigliani and Miller approach to cost of capital. Discuss briefly the propositions made in Modigliani...

How will a firm go about determining its ‘optimal capital structure’? State three assumptions of Modigliani and Miller approach to cost of capital. Discuss briefly the propositions made in Modigliani and Miller approach on cost of capital.