- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 34. Capital Structure
- Subject 2. Modigliani-Miller Propositions
CFA Practice Question
Modigliani and Miller's Proposition I states that:
B. The market value of a firm's debt is independent of its capital structure.
C. The market value of any firm is independent of its capital structure.
A. The market value of a firm's common stock is independent of its capital structure.
B. The market value of a firm's debt is independent of its capital structure.
C. The market value of any firm is independent of its capital structure.
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| sarath | Totoal market value of the firm = total values of the outsranding SECURITIES of the firm.. |