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weqwewe [10]
3 years ago
8

MM Proposition I with corporate taxes states that:

Business
1 answer:
OLEGan [10]3 years ago
8 0

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

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