Which One of the Following Statements Matches M&M Proposition I

Multiple Choice

Which one of the following statements matches M&M Proposition I?

A) The cost of equity capital has a positive linear relationship with a firm's capital structure.
B) The dividends paid by a firm determine the firm's value.
C) The cost of equity capital varies in response to changes in a firm's capital structure.
D) The value of a firm is independent of the firm's capital structure.
E) The value of a firm is dependent on the firm's capital structure.