Question 15 Which of the following statements concerning capital structure theory is false? Under MM with corporate taxes, the value of the levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt Under MM with zero taxes, financial leverage has no effect on firm value Under MM with corporate taxes, the effect of business risk is automatically incorporated because it is a function of The major contribution of Miller's theory is that it demonstrates that personal taxes decrease the value of corporate debt. Under MM with corporate taxes, increases with loverage, and this increase is just sufficient to offset the tax benefits of debt financing