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ryanolson41 ryanolson41
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A month ago
In the context of the M&M Irrelevance theorem, in the absence of taxes and bankruptcy costs, which of the following is true?

▸ Investors can undo the leverage that the corporation has undertaken.

▸ The total value of the firm is dependent on the firm's capital structure.

▸ Adding debt to the capital structure creates value.

▸ Shareholders will pay a premium for shares merely because a firm chooses to introduce financial leverage.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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ecunis1ecunis1
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A month ago
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ryanolson41 Author
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Thanks
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this is exactly what I needed
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Thanks for your help!!
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