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Basic Question 3 of 18

If capital markets are perfect and there are no taxes, the firm's choice of a capital structure

A. is not very important.
B. is totally inconsequential.
C. depends on the current interest.
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User Contributed Comments 1

User Comment
setmefree in a perfect capital market: symmetric information, no transation costs, investor borrows at same rate as corporation,
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain the Modigliani-Miller propositions regarding capital structure

CFA® 2025 Level I Curriculum, Volume 2, Module 6.