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Firm A is levered. Firm B is unlevered. In all other aspects, Firms A and B are identical. There is no depreciation expense. Considering taxes,

Firm A is levered. Firm B is unlevered. In all other aspects, Firms A and B are identical. There is no depreciation expense. Considering taxes, Firm B will have ___ net income and ___ cash flow from operations than will Firm A. A. The same; the same B. Lower; lower C. Higher; lower D. Higher; higher E. Lower, higher

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