According to __________, a Firm's Cost of Equity Increases with Greater

Multiple Choice

According to __________, a firm's cost of equity increases with greater debt financing, while the WACC first decreases and then increases.

A) M&M Proposition I with taxes.
B) M&M Proposition I without taxes.
C) The static theory of capital structure.
D) M&M Proposition II without taxes.
E) M&M Proposition II with taxes.