9.( a ) With thorough and accurate reference to Modigliani and Miller's two capital structure propositions , critically evaluate the efect of a firm increasing its debt - to equity ratio on its ' Equity , Debt and [ Asseis . Include in your discussion the implication of the debt not being risk - free and the presence of taxation . Summarise your discussion in a well - labelled graph. - 9.( a ) With thorough and accurate reference to Modigliani and Miller's two capital structure propositions , critically evaluate the efect of a firm increasing its debt - to equity ratio on its ' Equity , Debt and [ Asseis . Include in your discussion the implication of the debt not being risk - free and the presence of taxation . Summarise your discussion in a well - labelled graph