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Which of the following is true?

Which of the following is true? There can be more than one answer


As leverage increases the value of the firm increasing according to the MM theory with corporate taxes.


As leverage increases the value of the firm decreases according to the MM theory with corporate taxes


Taxes rates on interest and dividends are always the same. 


The US tax codes encourages companies to use debt. 

Top Answer

As leverage increases the value of the firm increasing... View the full answer

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Other Answers

As leverage increases the value of the firm increasing... View the full answer

Modigliani and Miller (MM) theory: It is the theory... View the full answer

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