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Tut07 - b ability of a firm to self-determine the amount of...

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FINS 5514 Week 7: Capital Structure 1. Which one of the following supports the statement that it is totally irrelevant how a firm arranges its financing? a. M&M Proposition I without taxes b. M&M Proposition I with taxes c. M&M Proposition II without taxes d. M&M Proposition II with taxes 2. _____ risk determines the required return on assets. 3. Which one of the following is indicative of an optimal capital structure? 4. Homemade leverage refers to the:
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