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According to the Modigilani-Miller theory, when there are taxes, the optimal level of leverage from a tax savings perspective is the level such that interest

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According to the Modigilani-Miller theory, when there are taxes, the optimal level of leverage from a tax savings perspective is the level such that interest equals earnings before interest and taxes (EBIT). True False Question 16 3.33pts A company's payout policy involves how a firm chooses between the alternative ways to distribute free cash flow to equity holders. True False

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