The essence of Modigliani and Miller’s irrelevance theory is that A)

The essence of Modigliani and Miller’s irrelevance theory is that

A) increasing operating leverage will maximize EPS.
B) shareholders prefer to invest in firms with a high degree of financial leverage.
C) altering a firm’s capital structure will increase its value.
D) utilizing more debt will increase a firm’s value.
E) the value of the firm will not be changed by how assets are distributed between bondholders and stockholders.

ANSWER

E