Which of the following is true?

Question 9 options:

	As leverage increases the value of the firm increasing according to the MM theory with corporate taxes.
	As leverage increases the value of the firm decreases according to the MM theory with corporate taxes
	Taxes rates on interest and dividends are always the same.
	The US tax codes encourages companies to use debt.

Question 10 (1 point)

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If the personal tax on stock income and the personal tax on debt income both go to zero, the MM theory with personal taxes reduces to the MM theory with only corporate taxes.

Question 10 options:

	True
	False