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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.

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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