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7. (5 Points) The graph plots the value of the firm, VL, aganst the amount of Debt, D. Three lines corresponding to three different

 



7. (5 Points) The graph plots the value of the firm, VL, aganst the amount of Debt, D. Three lines corresponding to three different stories have been drawn: MM I without taxes, MM I with taxes and static trade off theory. Vu (a) (2 Points Label the three graphs.

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