According to M&M Proposition I with Taxes, the Interest Tax

Multiple Choice

According to M&M Proposition I with taxes, the interest tax shield:

A) Affects the net earnings, but not the value of a firm.
B) Increases the pre-tax rate of return on debt.
C) Increases the value of a firm.
D) Lowers the firm's cost of equity.
E) Increases the firm's weighted average cost of capital.