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Question

Define each the  following terms :

a. MM Proposition

b.Miller Model

c.Financial Distress Cost

d. Agency Cost 

e. Trade off model

f. Value of debt tax

g. Equity as an option

 

 

 

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EYS***774 2019-09-09 11:51:12
Slight grammar mistakes, but content is accurate.

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1. MM Proposition I without corporate taxes says that an association's relative extents of debt and equity don't make a difference; MM I with corporate taxes say that the firm with the greater extent of debt is more significant due to the interest tax shield.

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