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MM Proposition I with taxes states that: a. capital structure does not affect firm value b. increasing the debt-equity ratio increases firm value c. the

MM Proposition I with taxes states that:

a. capital structure does not affect firm value

b. increasing the debt-equity ratio increases firm value

c. the unlevered cost of equity is equal to Rwacc

d. firm value is maximized when the firm is all-equity financed

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