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The Modigliani and Miller hypothesis does NOT work in the "realworld" because: a) interest

The Modigliani and Miller hypothesis does NOT work in the "realworld" because: a) interest

The Modigliani and Miller hypothesis does NOT work in the "realworld" because: a) interest is tax deductible, providing anadvantage to debt financing b) higher levels of debt increase thelikelihood of bankruptcy, and bankruptcy has real costs for anycorporation c) both a and b d) dividend payment are fixed and taxdeductible for the corporation

Abhinav 01-Dec-2019

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