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What did Modigliani and Miller find when they assumed taxes and bankruptcy costs? Group of answer choices Firm value increases with more debt The u-shaped

What did Modigliani and Miller find when they assumed taxes and bankruptcy costs?

Group of answer choices

Firm value increases with more debt

The u-shaped cost of capital with a unique percentage of debt financing that minimizes the WACC and maximizes firm value.

Firm value decreases with more debt.

Firm value is unaffected by the amount of debt used to finance the firm.

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