According to M M Proposition II, when there are corporate taxes, what happens to the cost of equity when leverage is increased It remains constant O It is independent from the capital structure It may increase or decrease depending on company specific factors It increases O It decreases

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According to M M Proposition II, when there are corporate taxes, what happens to the cost of equity when leverage is increased  It remains constant  O It is independent from the capital structure  It may increase or decrease depending on company specific factors  It increases  O It decreases

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Question

According to M&M Proposition II, when there are corporate taxes, what happens to the cost of equity when leverage is increased? It remains constant. O

According to M&M Proposition II, when there are corporate taxes, what happens to the cost of equity when leverage is increased? It remains constant. O It is independent from the capital structure. It may increase or decrease depending on company specific factors. It increases. O It decreases

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