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According to the Modigliani and Miller Proposition I, when a firm operates with a market with taxes but no bankruptcy costs, which of the following

According to the Modigliani and Miller Proposition I, when a firm operates with a market with taxes but no bankruptcy costs, which of the following formulas can be used to calculate the value of the leveraged firm?

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VL = VU + (D*TC)

VL = EBIT x (1-TC)/ RL

VL= EBIT x (1-TC)/ RU

VL = EBIT/RU

VL = VU

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