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Which of the following statements BEST reflects Modigliani & Miller (M & M) Proposition I, with no taxes and no costs of financial distress? A.A
- Which of the following statements BEST reflects Modigliani & Miller (M & M) Proposition I, with no taxes and no costs of financial distress?
- A.A financial manager cannot increase the value of a firm by changing its capital structure.
- B.Debt increases the risk of equity.
- C.Firms should use 100% debt to take advantage of the tax shield.
- D.All of the above.
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
