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Under Modigliani and Miller's Proposition II, in the absence of taxes: Options in Question : B. investment and capital structure decisions are interdependent. C. the
Under Modigliani and Miller's Proposition II, in the absence of taxes:
Options in Question :
B. investment and capital structure decisions are interdependent.
C. the cost of equity increases as the use of debt in the capital structure increases.
A. the capital structure decision has no effect on the cost of equity.
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