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The proposition that the value of the firm would increase whenthe firm have a higher financial leverage (higher debt to equityratio) is called: the capital

  1. The proposition that the value of the firm would increase whenthe firm have a higher financial leverage (higher debt to equityratio) is called:
  1. the capital asset pricing model.
  2. MM Proposition I (no taxes).
  3. MM Proposition I (with taxes).
  4. the law of one price.

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