Question

MM’s Proposition II states that the value of the firm depends on all of the following...

MM’s Proposition II states that the value of the firm depends on all of the following except,
Select one:
a. Cost of equity of the firm
b. Required rate of return on the firm’s assets
c. Cost of debt of the firm
d. Debt to Equity ratio of the firm

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Answer #1

Solution)

Thus we can conclude that the value of the firm does not depend upon "Required rate of return on the firm’s assets:.

Hence, the correct option is B.

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