A Major Contribution of the Miller Model Is That It

question 13

Multiple Choice

A major contribution of the Miller model is that it demonstrates,other things held constant,that

• A) personal taxes increase the value of using corporate debt.
• B) personal taxes lower the value of using corporate debt.
• C) personal taxes have no effect on the value of using corporate debt.
• D) financial distress and agency costs reduce the value of using corporate debt.
• E) debt costs increase with financial leverage.