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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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