Question: Question 22 (1 point) In the Modigliani & Miller setting without market imperfections, which of the following statements is CORRECT: Leverage increases the value of

Question 22 (1 point) In the Modigliani & Miller setting without

Question 22 (1 point) In the Modigliani & Miller setting without market imperfections, which of the following statements is CORRECT: Leverage increases the value of the firm only when there is no risk that the firm will default. Leverage increases the risk of debt even when there is no risk that the firm will default. Leverage increases the risk of equity even when there is no risk that the firm will default. Leverage increases the value of the firm only when there is a high risk that the firm will default

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