According to MM Proposition II with No Taxes,the

Multiple Choice

According to MM Proposition II with no taxes,the:

A) return on assets is determined by financial risk.
B) required return on equity is a linear function of the firm's debt-equity ratio.
C) cost of equity in inversely related to the firm's debt-equity ratio.
D) cost of debt must equal the cost of equity.
E) required return on assets exceeds the weighted average cost of capital.