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My Subject Is Managerial Finance Part b (10) 1. The Modigliani and Miller propositions, when the no-tax assumption is relaxed, suggest that the fi rm

My Subject Is Managerial Finance

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Part b (10) 1. The Modigliani and Miller propositions, when the no-tax assumption is relaxed, suggest that the fi rm should finance itself with as much debt as possible. Taking this suggestion to the extreme, is it even possible to finance a fi rm with 100 percent debt and no equity? Why or why not

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