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Evaluate the following statements (5 Statements) with True, False, or Uncertain. Explain your reasoning. Note: Only explainations count! An answer without an explanation gets no

Evaluate the following statements (5 Statements) with True, False, or Uncertain. Explain your reasoning. Note: Only explainations count! An answer without an explanation gets no credit. S1 According to the Modigliana and Miller theorem, if there is no bankruptcy risk, it is optimal for a firm to have 100% debt financing. S2 Compared to IT firms, conglomerates would have lower debt to equity ratios. S3 When the tax rate for the capital gains increases, investors will prefer a firm with a higher dividend rate, other things equal. S4 When there is information asymmetry, corporations' most preferred method of financing would be issuing new equity.

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