Quiz Ch 16 – T/F MM’s Proposition II and Debt-Equity Ratio

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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True or false: According to MM's Proposition II, the firm's debt-equity ratio increase leads to a higher required return on equity.

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  • Search Terms: ⊚ true ⊚ false as debt-equity equity firm's ii increases increases. mm's on proposition ratio required return states that the
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