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According to Modighiani and Miller, in a perfect copital market, the value of a firm increases when it increases its debt-to-equity ratio. True False Question

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According to Modighiani and Miller, in a perfect copital market, the value of a firm increases when it increases its debt-to-equity ratio. True False Question 2 3.33pts The use of leverage by a firm reduces the risk to the firm's stockholders even if there is no risk that the firm will default. True False

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