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mars03 mars03
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2 months ago
Which of the following statements is FALSE?

▸ With taxes and bankruptcy costs, the value of the firm is independent of its debt-equity ratio.

▸ With taxes and bankruptcy costs, the value of the firm reaches a maximum and then declines as the debt-equity ratio increases.

▸ With taxes and zero bankruptcy costs, the value of the firm reaches a maximum and then declines as the debt-equity ratio increases.

▸ With zero taxes and zero bankruptcy costs, the value of the firm is independent of its debt-equity ratio.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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gsh2571gsh2571
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2 months ago
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mars03 Author
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2 months ago
Correct Slight Smile TY
my life
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Yesterday
Smart ... Thanks!
annabananerz
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2 hours ago
Thanks for your help!!
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