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You and your spouse are considering purchasing a house for $200,000. You have the option of using your savings and paying outright or borrowing the

You and your spouse are considering purchasing a house for $200,000. You have the option of using your savings and paying outright or borrowing the money from your bank. Your spouse just said, what does it matter? A dollar is a dollar. The choice between using our equity or debt doesnt matter. Their view is consistent with which of the following? M&M Prop I M&M Prop II Static Theory of Capital Structure WACC

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