Question
The reason that MM Proposition I holds in the presence of corporate taxation is because: A.Bondholders require higher rates of return than stockholders do B.Debt
The reason that MM Proposition I holds in the presence of corporate taxation is because:
A.Bondholders require higher rates of return than stockholders do
B.Debt is more expensive than equity
C. Levered firms pay less taxes compared with identical unlevered firms
D. Dividends become a tax shield
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
