Multiple Choice
M&M Proposition I with no tax supports the argument that:
A) business risk has no effect on the return on assets.
B) the cost of equity rises as leverage rises.
C) a company's debt-equity ratio is completely irrelevant.
D) business risk is irrelevant.
E) homemade leverage is irrelevant.
Correct Answer:

Verified
Correct Answer:
Verified
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