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its definetly not 1, i think its 2 because in case 1 debt and equity...

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Accounting

imageits definetly not 1, i think its 2 because in case 1 debt and equity is treated the same. Just need clarification

Question 12 Under M&M case 1 (no bankruptcy and no taxation), which one below is wrong? O 1. The debt-equity ratio of a firm doesn't affect its firm value. 2. Financing through debt is better than equity due to its lower cost. 3. The cost of the debt does NOT increase with leverage. O 4. The debt-equity ratio of a firm doesn't affect its cost of debt. Moving to another question will save this response

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