MM totally ignore the fact that as you borrow more, you have to pay higher rates of

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“MM totally ignore the fact that as you borrow more, you have to pay higher rates of interest.” Explain carefully whether this is a valid objection.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 04:34 AM

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MM totally ignore the fact that as you borrow more, you have to pay higher rates of

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This is not a valid objection MMs Proposition II expli...View the full answer

Principles of Corporate Finance

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