Quiz Ch 13 – T/F Modigliani and Miller’s Extended Model and Optimal Capital Structure
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: In their second article, Modigliani and Miller (MM) considered taxes, bankruptcy, and disregarded factors from their initial article. Upon integrating these elements, they deduced that each firm possesses a distinct optimal capital structure. Furthermore, the second MM model aids managers in ascertaining their firm’s optimal debt ratio.