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Question 2 (6 marks) Describe Proposition I (with taxes) and Proposition II (with taxes) of M&M Theorem by Modigliani and Miller which formed the basis

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Question 2 (6 marks) Describe Proposition I (with taxes) and Proposition II (with taxes) of M&M Theorem by Modigliani and Miller which formed the basis of contemporary capital structure theory. Discuss briefly how these two propositions are applied in the real world. (maximum 200 words)

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