M & M Proposition I with No Tax Supports the Argument

Multiple Choice

M & M Proposition I with no tax supports the argument that:

A) business risk determines the return on assets.
B) the cost of equity rises as leverage rises.
C) the debt-equity ratio of a firm is completely irrelevant.
D) a firm should borrow money to the point where the tax benefit from debt is equal to the cost of the increased probability of financial distress.
E) homemade leverage is irrelevant.