Question: Consider the following equation: U = E + D The term D in the equation is: the proportion of the firm financed with equity. equal

Consider the following equation: U = E + D The term D in the equation is:

the proportion of the firm financed with equity.

equal to zero if the firm's debt is riskless.

the same as the beta of the firm's assets.

the required return on the firm's equity.

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