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Mm theory on capital structure has three stages in its

MM Theory on Capital Structure has three stages in its development which assumes 1) no taxes, 2) only corporate taxes are allowed, and 3) both personal and corporate taxes are allowed (Miller’s Model)?

A) Graph the value of a levered firm vs. an unlevered firm with debt ratio changes under each assumption.

B) What implications to managers of each model with regard to using leverage?

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Financial Management: Mm theory on capital structure has three stages in its

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