Question: M&M Proposition I 1 with tax implies that the: Multiple Choiceweighted average cost of capital decreases as the debt - equity ratio increases.value of a

M&M Proposition I1 with tax implies that the:Multiple Choiceweighted average cost of capital decreases as the debt-equity ratio increases.value of a company is inversely related to the amount of leverage used by that company.value of an unlevered company equals the value of a levered company plus the value of the interest tax shield.cost of capital is the same regardless of the mix of debt and equity used.cost of equity increases as the debt-equity ratio decreases.

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