1.Consider the following equation: U = E + D The term D in the equation is: Question 18Select one: A. the required return on the firm's equity. B. the proportion of the firm financed with equity. C. equal to zero if the firm's debt is riskless. D. the same as the beta of the firm's assets. 2.Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. Suppose that you borrow $30,000 in financing the project. According to MM proposition II, the firm's equity cost of capital will be closest to: Question 19Select one: A. 21%. B. 25%. C. 20%. D. 15%. 3.The following equation: X = rE + rD can be used to calculate all of the following EXCEPT: Question 23Select one: A. the weighted average cost of capital. B. the levered cost of equity. C. the unlevered cost of equity. D. the cost of capital for the firm's assets