Question: 1. Explain the Miller Modigliani Proposition II without taxes without taxes in relation to Cost of Equity (Re) and Weighted Average Cost of Capital (WACC).

1. Explain the Miller Modigliani Proposition II without taxes without taxes in relation to Cost of Equity (Re) and Weighted Average Cost of Capital (WACC). (Hint: Your explanation should relate to business and financial risks).

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