Question: Why does MM Proposition I not hold in the presence of corporate taxes? Question 2 1 options: a ) Levered firms pay lower taxes when

Why does MM Proposition I not hold in the presence of corporate taxes?
Question 21 options:
a)
Levered firms pay lower taxes when compared with identical unlevered firms.
b)
Bondholders require higher rates of return compared with stockholders.
c)
Earnings per share are no longer relevant with taxes.
d)
Dividends are no longer relevant with taxes.

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