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Q2. You have been hired by MNCs as trainee finance officer and you heard from...

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Finance

Q2. You have been hired by MNCs as trainee finance officer and you heard from your boss that if debt is used to finance company instead of equity it will increase the firms shareholder value. Do you agree with this statement? Assume that taxes exist and explain the statement that the value of levered (using debt) firm is always greater than the value of unlevered (dont use debt) firm?

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