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In corporate finance, what is the effect of increasing leverage on a firm's cost of equity according to the Modigliani-Miller theorem with taxes?
A
It decreases the cost of equity
B
It increases the cost of equity
C
It reduces the firm’s overall risk
D
It decreases the cost of debt, but has no impact on cost of equity
E
It increases the cost of debt, but has no impact on cost of equity
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