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Business, 09.12.2021 14:30 kenken2583

MM Proposition I with no tax supports the argument that: Multiple Choice the cost of equity rises as leverage rises. a firm should borrow money to the point where the tax benefit from debt is equal to the cost of the increased probability of financial distress. it is completely irrelevant how a firm arranges its finances. business risk determines the return on assets. financial risk is determined by the debt-equity ratio.

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