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Which of the following statements regarding the M&M Propositions is true? a. Once the tax effect is considered, there is a strictly increasing linear relationship
Which of the following statements regarding the M&M Propositions is true?
a. Once the tax effect is considered, there is a strictly increasing linear relationship between the amount of debt and the firm value.
b. Without taxes, the firm's capital structure is relevant.
c. With taxes, a firm can increase its value by reducing debt.
d. without taxes, the optimal amount of leverage for a firm is zero debt.
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