MM Proposition I with corporate taxes states that: I. capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield;
II. by raising the debt-to-equity ratio, the firm can lower its taxes and thereby increase its total value;
III. firm value is maximized by using an all-equity capital structure

a. I only
b. II only
c. III only
d. I and II

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

correct, but each time you dont pay the price of the penalty can increase.

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;