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

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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                 ________________________________

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