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QUESTION

Which one 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?

Which one 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?

Multiple Choice

  • MM Proposition I, without tax
  • MM Proposition I, with tax
  • MM Proposition II, without tax
  • MM Proposition II, with tax
  • MM Proposition I, with and without taxes
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