Which one of these proposes that the value of a levered firm

Which one of these proposes that the value of a levered firm exceeds the value of an unlevered firm by the present value of the tax shield?

MM Proposition I, with and without taxes

MM Proposition II, with tax

MM Proposition II, without tax

MM Proposition I, with tax

MM Proposition I, without tax

Solution

Modigilani and Millers Propostion II with tax says that the value of the leveredfirm exceeds the value of an unlevered firm by the present value of tax shield.