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Which one of the following supports the theory that the value of a firm increases as the firm's level of debt increases? A. M&M Proposition

Which one of the following supports the theory that the value of a firm increases as the firm's level of debt increases?

A. M&M Proposition I without taxes B. M&M Proposition II without taxes C. M&M Proposition I with taxes D. Static theory of capital structure E. No theory suggests this.

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