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Which of the following propositions concerning the second paper published by Modigliani & Miller in 1963 (MM II) are true? (i) Corporate taxes influence a

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Which of the following propositions concerning the second paper published by Modigliani \& Miller in 1963 (MM II) are true? (i) Corporate taxes influence a firm's cost of capital. (ii) In a world with corporate taxes, firm value decreases as the amount of debt in the capital structure decreases. (iii) Given an amount of debt in a levered firm's capital structure, its marginal corporate tax rate does not influence the firm's value. (iv) Stockholders receive any value of the tax shield created by higher leverage. Only (i), (ii) and (iii) are true. Only (i), (ii) and (iv) are true. Only (i) and (ii) are true. Only (i), (iii) and (iv) are true. All four are true

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