Modigliani and Miller (M&M) Proposition I states:
A) overall market value of the firm = market value of equity – market value of debt.
B) overall market value of equity = market value of the firm+ market value of debt.
C) overall market value of the firm = market value of equity + market value of debt.
D) overall market value of debt = market value of equity + market value of the firm.
ANSWER
C
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