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Which of These Proposes That the Value of a Levered

Question 64

Multiple Choice

Which of these proposes that the value of a levered firm exceeds the value of an unlevered firm by the present value of the tax shield?


A) MM Proposition I with and without taxes
B) MM Proposition I with tax
C) MM Proposition II with tax
D) MM Proposition I without tax
E) MM Proposition II without tax

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