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The Proposition That the Value of a Levered Firm Is

Question 76

Multiple Choice

The proposition that the value of a levered firm is equal to the value of an unlevered firm is known as:


A) static theory proposition.
B) MM Proposition I with no tax.
C) MM Proposition II with no tax.
D) MM Proposition I with tax.
E) MM Proposition II with tax.

Correct Answer:

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