Which of the following statements about the miller model of, Ask an Expert

Finance

Which of the following statements about the Miller model of capital structure is false?

The Miller model adds personal taxes to the MM with taxes model.

The results of the Miller model depend on the relationship between the corporate tax rate on ordinary income and the corporate tax rate on investment income.

In general, the Miller model shows a smaller gain from leverage than the MM with taxes model.

The Miller model was developed later than the two MM models.

The Miller model uses the same set of assumptions as the MM model with taxes with one exception.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92404002

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