Multiple Choice
MM Proposition II,without taxes,implies that the required return on equity is
A) a result of homemade leverage.
B) inversely related to the firm's debt-to-equity ratio.
C) directly affected by the firm's debt-to-equity ratio.
D) independent of the firm's capital structure.
E) a linear function of the market's rate of interest.
Correct Answer:
Verified
Correct Answer:
Verified
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