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M&M Proposition I with No Tax Supports the Argument That

Question 84

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:

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