What is relation of value of firm and its capital structure

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1. Explain the research results of Modigliani and Miller in the area of capital structure.

2. What is the relationship between the value of a firm and its capital structure without a corporate income tax? With a corporate income tax?

3. What is the relationship between the value of a firm and its capital structure, given the existence of a corporate income tax, bankruptcy costs, and agency costs?

Reference no: EM13927426

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