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Under the M&M world, as the firm borrows more, (i) a targer fraction of the firm is financed by cheap debt, but at the same

Under the M&M world, as the firm borrows more, (i) a targer fraction of the firm is financed by cheap debt, but at the same time, on the COM of equity rises. These two effects cancel each other out so the WACC remains unchanged. A True B. False

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