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23. Modigiliani and Miller said that adding debt to the capital structure of a previously-unlevered firm makes it more valuable because a. Dividends are not

23. Modigiliani and Miller said that adding debt to the capital structure of a previously-unlevered firm makes it more valuable because

a. Dividends are not tax-deductible

b. Operating leverage makes equity more risky

c. Taxes go down in a levered firm

d. Operating leverage makes EBIT more risky

e. Financial leverage makes equity more risky

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