Question: Question 13 (4 points) The reason that MM Proposition I does not hold in the presence of corporate taxation is because: Question 13 options: levered

Question 13 (4 points)

The reason that MM Proposition I does not hold in the presence of corporate taxation is because:

Question 13 options:

levered firms pay less taxes compared with identical unlevered firms

bondholders require higher rates of return compared with stockholders

earnings per share are no longer relevant with taxes

dividends are no longer relevant with taxes

All of the above

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