The independence hypothesis is one of the theories explaining a firm's capital structure. Which of the following statements is correct concerning this theory? O the value of the firm increases as it...

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Extracted text: The independence hypothesis is one of the theories explaining a firm's capital structure. Which of the following statements is correct concerning this theory? O the value of the firm increases as it takes on more debt because of the tax deductibility of interest the firm's cost of capital and firm value are not affected by the amount of leverage O the firm's value is affected by how much debt the firm uses O the value of the firm decreases as the firm takes on more debt because of the risk of bankruptcy