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Consider the setting of Modigliani Miller with no taxes and no bankruptcy risk. Which statement is TRUE? a. WACC increases with leverage b. WACC declines

Consider the setting of Modigliani Miller with no taxes and no bankruptcy risk. Which statement is TRUE?

a. WACC increases with leverage

b. WACC declines with leverage

c. WACC is different than return on assets

d. Correct answer is not available

e. WACC is independent of leverage

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