Quiz Ch 17 – T/F Modigliani and Miller Proposition II: Debt Impact on Cost of Equity

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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True or false: Modigliani and Miller Proposition II asserts that the cost of equity rises with increased debt issuance, while the weighted average cost of capital remains constant.

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  • Search Terms: ⊚ true ⊚ false according and as average but capital cost debt equity ii, increases is issued, miller modigliani more of proposition remains the to unchanged. weighted
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