Answer:
The statement is: True.
Step-by-step explanation:
The Modigliani-Miller (M&M) Theorem is used in financial and economic studies to analyze the value of a firm such as a business or a corporation. The M&M theorem states that a firm's value is based on its ability to earn revenue plus the risk of its underlying assets. Thus, the way a company finances its operations should not affect its value.
When it comes to taxes, the M&M theorem states that the capital structure of a company is not affected when there are no taxes. The theorem starts with the corporate taxes to then relate the approach to personal taxes.