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If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt
If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt is 6%, cost of equity is 10% and the corporate tax rate is 21%?
Select one:
A. 100%
B. 35%
C. 0%
D. 21%
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