CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

Which of the following is incorrect?
A. The Trade-off Theory for Capital Structure is that firms trade off the tax advantage of more debt against the increased expected bankruptcy costs.
B. In the Modigliani-Miller world, Dividend Policy does not matter.
C. Management is usually more invested in debt of firms compared to equity.
Explanation: Management is usually more invested in equity of firms compared to debt.

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