Economics · Capital Structure Theories
As per the Modigliani and Miller (MM) approach of Capital Structure, which assumption from the following is NOT correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Capital markets are perfect.
- 2The cut-off point of investment in a firm is the dividend rate.✓
- 3Investors act rationally.
- 4There are no corporate taxes.
Correct answer
The cut-off point of investment in a firm is the dividend rate.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Capital Structure Theories MCQs →Want more practice questions on Capital Structure Theories?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Capital Structure Theories