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Author Question: According to M&M Proposition II (with taxes) stockholders require higher returns as their company ... (Read 87 times)

jwb375

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on: Apr 25, 2021

Question 1

A capital structure that maximizes firm value will minimize the company's weighted average cost of capital. Assume that there are corporate taxes.
◦ true
◦ false

Question 2

According to M&M Proposition II (with taxes) stockholders require higher returns as their company increases its leverage but this is offset by the fact that the cost of debt is lower, and so the weighted average cost of capital does not change with leverage.
◦ true
◦ false
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Marked as best answer by jwb375 on Apr 25, 2021

Eunice618

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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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jwb375

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

milbourne11

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

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