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5) Suppose a firm has 6.5% return on equity. If the firm restructures it's capital by issuing more equity and reducing debt, the return on

5) Suppose a firm has 6.5% return on equity. If the firm restructures it's capital by issuing more equity and reducing debt, the return on equity will according to Modigliani-Miller Proposition a) Fall b) Rise c) Stay the same d) Not enough information

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