According to M&M Proposition I with Taxes, the Value of a Levered

Multiple Choice

According to M&M Proposition I with taxes, the value of a levered firm will increase when the:

A) value of the unlevered firm increases.
B) tax rate is decreased.
C) debt-equity ratio is lowered.
D) interest rate on the debt is lowered.
E) interest rate on the debt is increased.