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Author Question: Which statement concerning capital structure theory is NOT true? (Read 2678 times)

BSITTON

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on: Aug 7, 2023
Which statement concerning capital structure theory is NOT true?

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The major contribution of Miller’s theory is that it demonstrates that personal taxes decrease the value of using corporate debt.


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Under MM with corporate taxes, rsincreases with leverage, and this increase exactly offsets the tax benefits of debt financing.


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Under MM with corporate taxes, the value of a levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt.


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Under MM with zero taxes, financial leverage has no effect on a firm’s value.

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

MajorWaffle

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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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BSITTON

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

scottmt

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Reply 3 on: Yesterday
Excellent

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