Which of the following is not a valid assumption of MM approach to capital structure?

CS Executive · Financial and Strategic Management · PYQS · December 2019
Which of the following is not a valid assumption of MM approach to capital structure?
(A) Securities are infinitely divisible
(B) Lack of free flow of information
(C) Transactions costs are zero
(D) No taxation

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic