list the three assumptions that lie behind Modigluani-Miller theory in a world without taxes.
list the three assumptions that lie behind
Modigluani-Miller theory in a world without taxes.
Homework Answers
The assumptions that lie behind Modigliani-Miller theory in a world without taxes:
1. Transaction cost does not exist. It means that there is no
transaction cost for buying and selling of securities.
2. All investors will behave rationally.
3. There is a symmetry of information. It means that the investor
will have access to all the information which insider has (i.e
management and corporation).
4. There is no Corporate dividend tax.
5. That is no flotation cost i.e payment to merchant bankers,
underwriting commissions etc.
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list the three assumptions that lie behind
Modigluani-Miller theory in a world without taxes.
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I'm looking to calculate the market value of each
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