MCQOPTIONS
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| 1. |
Which of the following is incorrect for value of the firm? |
| A. | In the initial preposition, MM Model argues that value is independent of the financing mix. |
| B. | Total value of levered and unlevered firms is otherwise arbitrage will take place. |
| C. | Total value incorporates borrowings by firm but excludes personal borrowing. |
| D. | Total value does not change because underlying does not change with financing mix. |
| Answer» E. | |