MM Proposition II with No Taxes Supports the Argument That

Multiple Choice

MM Proposition II with no taxes supports the argument that a firm's:

A) unlevered equity is risk-free.
B) cost of equity is inversely related to the firm's debt-equity level.
C) cost of equity is unaffected by the firm's unlevered cost of capital.
D) WACC will exceed the unlevered firm's cost of equity.
E) WACC remains constant even if the firm changes its capital structure.