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    Question

    Modigliani-Miller (MM) Approach is based on some

    assumptions. Which of the following is not an assumption of MM Approach?
    A Information is not freely available and there are transactions cost Correct Answer Incorrect Answer
    B Non-existence of corporate taxes Correct Answer Incorrect Answer
    C Capital markets are perfect Correct Answer Incorrect Answer
    D All investors are rational Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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