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Author Question: According to MM, in a world with taxes, a firms value is maximized at almost 100% debt financing ... (Read 2985 times)

effaey

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on: Aug 7, 2023

Question 1

A firm’s financial risk refers to the extra risk shareholders bear as a result of using debt as compared with the risk they would bear if no debt were used.

◦ true
◦ false

Question 2

According to MM, in a world with taxes, a firm’s value is maximized at almost 100% debt financing since the gain from leverage increases as debt increases.

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by effaey on Aug 7, 2023

brunoanthony

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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effaey

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

Joy Chen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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