Question: The reason that MM Proposition (1) does not hold in the presence of corporate taxation is because: . bondholders require higher rates of return compared

The reason that MM Proposition (1) does not hold in the

The reason that MM Proposition (1) does not hold in the presence of corporate taxation is because: . bondholders require higher rates of return compared with stockholders. O b. levered firms pay less taxes compared with identical unlevered firms. O c. earnings per share are no longer relevant with taxes. O d. dividends are no longer relevant with taxes. O e. all of the above

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