Question: TRUE or FALSE 1. The constant growth model does not work when the growth rate exceeds the required return. 2. Operating leverage is related to

TRUE or FALSE

1. The constant growth model does not work when the growth rate exceeds the required return.

2. Operating leverage is related to the amount of debt a firm uses

3. In a world with taxes and financial distress costs, Modigliani and Miller find that debt use can increase firm value.

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