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answer choices: II and Ill only Il and V only l and Ill only None of the statements Consider the tradeoff theory of capital structure

answer choices:

II and Ill only

Il and V only

l and Ill only

None of the statements

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Consider the tradeoff theory of capital structure with corporate taxes and bankruptcy costs. Which of the following statements is/ are correct? 1) Firm value always increases as more debt is added II) Firm value stays constant as more debt is added III) WACC always decreases as more debt is added IV) WACC always increases as more debt is added

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