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1. Modigliani & Miller Propositions (similar to P13-15) (24 points) A certain firm with no debt that operates in perfect capital markets currently generates a
1. Modigliani & Miller Propositions (similar to P13-15) (24 points) A certain firm with no debt that operates in perfect capital markets currently generates a 5.5% return for its shareholders and can issue a debt cost of 3%. Determine the firms ROE at the following debt-to-equity ratios: .5,1.0,1.5
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