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Use two separate diagrams to summarize the relationship between the cost of equity, after-tax cost of debt, and the weighted average cost of capital under
Use two separate diagrams to summarize the relationship between the cost of equity, after-tax cost of debt, and the weighted average cost of capital under the (1) M&M Proposition 2 with taxes and (2) M&M Proposition 2 with taxes and cost of financial distress. Briefly explain your diagrams.
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