In MM-Model, irrelevance of capital structure is based on:

Related MCQs

• Dividend irrelevance argument of MM Model is based on:
• MM model of dividend irrelevance uses arbitrage between-
• MM Model of Dividend irrelevance uses arbitrage between
• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• Use of Preference Share Capital in Capital structure
• According to MM approach, two identical firms in all respects except their capital structure can not have different market values or cost of capital because of-----
• In optimal capital structure the company’s cost of capital will be
• According to which theory two identical firms in all respect except their capital structure can not have different market value or cost of capital because of arbitrage process
• A company can increase its value and reduce the overall cost of capital by increasing the proportion of debt in its capital structure according to ----- approach
• The term capital structure denotes: