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Which of the following is consistent with the Modigliani and Miller Capital Structure Theorem with no taxes? A firm's weighted average cost of capital decreases
Which of the following is consistent with the Modigliani and Miller Capital Structure Theorem with no taxes?
A firm's weighted average cost of capital decreases as more financial leverage is used.
A firm's common stock price falls as more financial leverage is used.
A firm's weighted average cost of capital and common stock price are unaffected by the amount of financial leverage used by the firm.
A firm's weighted average cost of capital increases as more financial leverage is used.
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