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Regarding a companys capital structure, which of the following theories (I-III) imply the higher the firms debt level, the higher the risk of bankruptcy: I.

Regarding a companys capital structure, which of the following theories (I-III) imply the higher the firms debt level, the higher the risk of bankruptcy:

I. Modigliani & Miller Case I (MMI)

II. Modigliani & Miller Case II (MMII)

III. Static Theory

a) I b) II c) III d) II,III e) None of the above

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