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Author Question: Under the Static Tradeoff Theory, the optimal debt-to-equity ratio is higher than under Modigliani ... (Read 69 times)

humphriesbr@me.com

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on: Apr 25, 2021

Question 1

According to M&M Proposition II (no taxes) stockholders require higher returns as their company increases its leverage, and so the weighted average cost of capital also rises with leverage.
◦ true
◦ false

Question 2

Under the Static Tradeoff Theory, the optimal debt-to-equity ratio is higher than under Modigliani and Miller (with taxes).
◦ true
◦ false
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Marked as best answer by humphriesbr@me.com on Apr 25, 2021

ecox1012

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Reply #1 on: Apr 25, 2021
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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humphriesbr@me.com

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

laurnthompson

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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