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Modigliani and Miller's irrelevance proposition states that when a firm's cash flows are constant, an increase in the amount of debt the firm carries: will

Modigliani and Miller's irrelevance proposition states that when a firm's cash flows are constant, an

increase in the amount of debt the firm carries:

will increase the value of the firm.

will reduce the value of the firm.

will have no effect on the value of the firm.

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