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Question5) True and False (Justify your answer is necessary) (2 marks each) Multiple rates of return is a problem for both mutually exclusive projects and
Question5) True and False (Justify your answer is necessary) (2 marks each) Multiple rates of return is a problem for both mutually exclusive projects and independent projects True / False Modigliani and Miller proposition implies that in a world without taxes cost of equity keeps increasing as equity percentage in the capital structure keeps going up. True / False Value of the firm is merely the sum of values of the different projects True / False Homemade leverage implies that an investor can get the same returns by investing his own money in either a levered firm or an unlevered firm, by using a strategy of borrowing and buying more number of shares of the levered firm True / False
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