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(d) Discuss in brief both of the following statements: Modigliani and Miller have proved that corporation tax is advantageous to the value of levered firms.

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(d) Discuss in brief both of the following statements: Modigliani and Miller have proved that corporation tax is advantageous to the value of levered firms. The level of risk in different types of corporate funding is all a matter of perspective. [8 marks]

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