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The presence or absence of taxes is essential to M&M Theory of Capital Structures conclusions about capital structure because: Interest payments increase a firms taxable

The presence or absence of taxes is essential to M&M Theory of Capital Structures conclusions about capital structure because:

  1. Interest payments increase a firms taxable income
  2. Interest payments have no effect on a firms taxable income
  3. Interest payments reduce a firms taxable income
  4. Dividend payments reduce a firms taxable income
  5. None of the above

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