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According to the Miller & Modigliani (MM) Value of a Levered Firm with corporate taxes view (aka, the corporate tax view) of capital structure, the
According to the Miller & Modigliani (MM) Value of a Levered Firm with corporate taxes view (aka, the corporate tax view) of capital structure, the value of a levered firm increases as debt is increased. True, because of a debt tax shield (corporate tax) True, because debt increases potential financial distress False, because debt is bad for the firm False, because the debt tax shield decreases value None of the alternative responses are accurate
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