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5) A firm restructures its capital by issuing more debt and reducing equity. Which of the following is true according to the Modigliani-Miller Proposition? a)
5) A firm restructures its capital by issuing more debt and reducing equity. Which of the following is true according to the Modigliani-Miller Proposition? a) Risk for debt holders will increase b) Risk for equity holders will decrease c) Return for equity holders will decrease d) No change in the total value of the firm
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