Question: 7. How does Modigliani and Miller's Proposition II equation differ between the No Tax and Corporate Tax scenarios? 8. Three models of capital structure theory

7. How does Modigliani and Miller's Proposition II equation differ between the No Tax and Corporate Tax scenarios? 8. Three models of capital structure theory are graphed below. Match each firm value number with the corresponding model that it represents: a) Trade-off model, b) M&M with corporate taxes, c) M&M with zero taxes. 60 120 300 value 1 Value 3 60 20 0.2 0.6

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