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which of the following is true? a. As leverage increases, the value of the firm increases according to the MM theory with corporate taxes. b.

which of the following is true?

a. As leverage increases, the value of the firm increases according to the MM theory with corporate taxes.

b. As leverage increases, the value of the firm decreases according to the MM theory with corporate taxes

c. Taxes rates on interest and dividends are always the same.

d. The US tax code encourages companies to use debt.

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