1525. Which of the following is / are assumption(s) underlying the Miller and Modigliani analysis?

Capital markets are perfect
Investors are assumed to be rational and behave accordingly
There is no corporate or personal income tax
All of the above.
✅ The correct answer is D.
Capital markets are perfect, Investors are assumed to be rational and behave accordingly and there is no corporate or personal income tax are the assumptions underlying the Miller and Modigliani analysis.

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