MM Proposition I with No Tax Supports the Argument That

Multiple Choice

MM Proposition I with no tax supports the argument that:

A) business risk determines the return on assets.
B) it is completely irrelevant how a firm arranges its finances.
C) the cost of equity rises as leverage rises.
D) a firm should borrow money up to the point where the cost of debt equals the cost of equity.
E) financial risk is determined by the debt-equity ratio.