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Interpreting Financial & Accounting Information (CGI) 2023 > 11.12 The Modigliani and Miller theory of capital structure > Flashcards

11.12 The Modigliani and Miller theory of capital structure Flashcards

1
Q

What is the basis concept of the Modigliani and Miller theory of capital structure?

A

The value of a firm is independent of its capital structure, and so market value is solely determined by investment decisions.

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Interpreting Financial & Accounting Information (CGI) 2023 (161 decks)

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