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7. M&M Theory on Capital Structure has three stages in its development which assumes 1) no taxes, 2) only corporate taxes are allowed, and 3)

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7. M&M Theory on Capital Structure has three stages in its development which assumes 1) no taxes, 2) only corporate taxes are allowed, and 3) both personal and corporate taxes are allowed (Miller's model). A) Please show Miller's model and explain the meaning of the model. B) What is the implication of this model to managers with regard to using leverage

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