M&M Proposition I with No Tax Argues That

Multiple Choice

M&M Proposition I with no tax argues that:

A) Leverage increases the value of a firm.
B) The cost of equity decreases as the debt-equity ratio increases.
C) The value of a firm is unaffected by the debt-equity ratio the firm chooses.
D) The required return on a firm's assets is equal to the minimum weighted average cost of capital.
E) The value of a firm varies directly with a firm's cost of capital.