Question
19. In the real world with the presence of corporate taxation, MM Proposition I that VL= Vu does not hold because: A. levered firms pay
19. In the real world with the presence of corporate taxation, MM Proposition I that VL= Vu does not hold because:
A. levered firms pay less taxes compared with identical unlevered firms.
B. bondholders require higher rates of return compared with stockholders.
C. dividends are no longer relevant with taxes.
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Crypto Finance Law And Regulation
Authors: Joseph Lee
1st Edition
0367086611, 978-0367086619
