Which of the following statements is NOT correct? Under conditions of perfect capital markets:
A) investors do not pay taxes, but firms do.
B) firms do not pay taxes, but investors do.
C) capital structure matters because it can change the value of the firm.
D) capital structure does not matter because it cannot change the value of the firm.
ANSWER
A
Place an order in 3 easy steps. Takes less than 5 mins.