$14$

According to MM Proposition II:

Multiple Choice

$1$

points

$0213\mathrm{.}13$

References

the capital structure of a firm is irrelevant to the value of the firm.

the cost of levered equity depends solely on the return on debt, the debt$-$equity ratio, and the tax rate.

a firm's cost of equity is a positive linear function of the firm's capital structure.

the cost of equity is equivalent to the required return on the total assets of a levered firm.

the cost of debt is inversely related to a firm's debt$-$equity ratio.