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    Principles of Corporate Finance Study Set 5
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    Exam 17: Does Debt Policy Matter
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    According to Modigliani and Miller Proposition II, the Rate of Return
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According to Modigliani and Miller Proposition II, the Rate of Return

Question 43

Question 43

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According to Modigliani and Miller Proposition II, the rate of return required by the debt holders increases as the firm's debt-equity ratio increases.

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