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Which One of These Events Might Cause the Biggest Challenge

Question 70

Multiple Choice

Which one of these events might cause the biggest challenge to the MM propositions?


A) An increase in the corporate tax rates
B) A decrease in the cost of debt
C) An increase in a firm's unlevered WACC
D) A new law requiring equal lending rates for all borrowers
E) A change in tax laws to treat interest and dividends equally

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