Discussion

The Modigliani-Miller Propositions I and II have withstood over 50 years of empirical review and analysis. Explain what these propositions state, in general, and how they might impact financial decision-making within a firm. In addition, provide some indication of why they might fail in practice and based on these limitations, how firms should use these general ideas to make decisions about the leverage that they include in their capital structure.

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Explain what these propositions state in general and how they might impact financial decision-making within a firm.

APA

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