Which of the following is not one of the simplifying assumptions made - ProProfs Discuss
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Which of the following is not one of the simplifying assumptions made for the three main methods of capital budgeting?



A. The firm pays out all earnings as dividends.
B. The project has average risk.
C. Corporate taxes are the only market imperfection.
D. The firm’s debt-equity ratio is constant.

This question is part of 438 Chapter 18
Asked by Slodude, Last updated: Mar 05, 2020

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1 Answer

John Smith

John Smith

Answered May 25, 2017

The firm pays out all earnings as dividends.
 

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