lelebaker4136 lelebaker4136

22-03-2024
Business

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If the debt/equity ratio of the industry is 0.5, by applying Modigliani and Miller theory, hypothesize what should be done to maximize the value of a firm. State your assumptions.

a. Increase the debt/equity ratio
b. Decrease the debt/equity ratio
c. Maintain the same debt/equity ratio
d. None of the above

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