Which One of These Events Might Cause the Biggest Challenge

question 70

Multiple Choice

Which one of these events might cause the biggest challenge to the MM propositions?

• A)An increase in the corporate tax rates
• B)A decrease in the cost of debt
• C)An increase in a firm's unlevered WACC
• D)A new law requiring equal lending rates for all borrowers
• E)A change in tax laws to treat interest and dividends equally

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