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    Financial Management Principles and Applications Study Set 2
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    Exam 15: Capital Structure Policy
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    In the Original Version of the Modigliani and Miller Capital
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In the Original Version of the Modigliani and Miller Capital

Question 16

Question 16

True/False

In the original version of the Modigliani and Miller capital structure theorem, as a firm increases the amount of debt in its capital structure, the cost of equity will rise but the cost of capital will remain the same.

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