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M&M Proposition l with taxes states that: the optimal capital structure is the al-equity option. the levered value of a firm exceeds the firm's unlevered

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M&M Proposition l with taxes states that: the optimal capital structure is the al-equity option. the levered value of a firm exceeds the firm's unlevered value. a firm's capital structure is irrelevant. the value of a firm is independent of taxes. WACC remains constant given any debt-equity ratio

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