Question: Which one of these represents the difference between the value of a levered and an unlevered firm in MM Proposition I with taxes? A. R

Which one of these represents the difference between the value of a levered and an unlevered firm in MM Proposition I with taxes?

A. R0 - RS

B. tcB

C. R tcB

D. VU + R tcB

E. B/S(1 - tc)( R0 - RS)

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