Finance Objective Questions - Company Value and Capital Structure and Leverage and Managerial Discretion
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Question
1. M&M's Proposition I states that a company's value depends on its capital structure.
True or False
2. A higher level of leverage generally reduces managerial discretion.
True or False
Summary
These two objective questions belong to Finance and the first question is about company’s value depending on capital structure and the second question is about higher level of leverage reducing managerial discretion.
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