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Infinitez Infinitez
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Posts: 130
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A month ago
Use the following statements to answer this question:
I.In a perfect M&M world with corporate taxes, WACC decreases linearly with
the increase in debt in the company.
II.In a perfect M&M world with corporate taxes, the slope of the WACC is
proportional to debt.

▸ I and II are correct.

▸ I and II are incorrect.

▸ I is correct and II is incorrect.

▸ I is incorrect and II is correct.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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cheezeh3adcheezeh3ad
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Posts: 127
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A month ago
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