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M&M Proposition II with tax supports the argument that a firm's Cost of equity decreases as its weighted average cost of capital decreases Cost of

M&M Proposition II with tax supports the argument that a firm's
Cost of equity decreases as its weighted average cost of capital decreases
Cost of equity increases as the firm increases its debt-equity ratio
Cost of debt varies inversely with the debt-equity ratio
Use of debt decreases the value of the firm.
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