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| Q. |
Which of the following is not an assumption of Miller and Modigliani approach? |
| A. | There are no corporate or personal income tax |
| B. | Investors are assumed to be rational and behave accordingly |
| C. | There is no corporate tax though there are personal income tax |
| D. | Capital markets are perfect |
| Answer» C. There is no corporate tax though there are personal income tax | |
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