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Question 1: M&M Proposition I is the theory that the value of a firm depends upon the firm's capital structure. True or False? Question 2:

Question 1: M&M Proposition I is the theory that the value of a firm depends upon the firm's capital structure.

True or False?

Question 2: Financial risk is the risk associated with a firm's business classification.

True or False?

Question 3: M&M Proposition II, without taxes, states that the cost of equity increases as a firm increases its debt-equity ratio.

. True or False?

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