Chartered Financial Analyst Level 1
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According to the Modigliani and Miller Proposition I with taxes, the value of a levered company exceeds that of an unlevered company by an amount equal to the:
According to the Modigliani and Miller Proposition I with taxes, the value of a levered company exceeds that of an unlevered company by an amount equal to the:
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A
Value of the debt.
14.3%
B
After-tax interest paid.
28.6%
C
Tax rate multiplied by the value of the debt.
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