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    With Risky Debt and MM's Proposition II,the Expected Return on Assets
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With Risky Debt and MM's Proposition II,the Expected Return on Assets

Question 69

Question 69

Multiple Choice

With risky debt and MM's Proposition II,the expected return on assets _____ as the debt-equity ratio _____.


A) increases; increases
B) decreases; increases
C) increases; decreases
D) remains constant; increases

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