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Help Neededholding All Else Constant What Do Mm’S Theories Predict About The Movement Of The


Help needed

Holding all else constant, what do MM’s theories predict about the movement of the

following variables if a levered firm in the 34% tax bracket totally unlevers itself?

Cost of Equity ________________________________

Financial Distress Costs ________________________________

WACC ________________________________

Total Firm Value ________________________________

Marginal Tax Rate ________________________________