Question: QUESTION 8 MM proposition in a world of corporate taxes inidcates that; a. Value of a levered firm is equal to the value of an

QUESTION 8 MM proposition in a world of corporate taxes inidcates

QUESTION 8 MM proposition in a world of corporate taxes inidcates that; a. Value of a levered firm is equal to the value of an unlevered firm b. Value of a levered firm is equal to the value of an unlevered firm plus the present value of interest tax shields O c. The cost of equity declines with higher leverage d. The cost of borrowing declines with leverage e. Internal equity financing should be preferrred to borrowing

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