Question: Consider the following equation: U = E/E+D E + D/E+D D The term E/E+D in the equation is: A. Equal to zero if the firm's

Consider the following equation:

U = E/E+D E + D/E+D D

The term E/E+D in the equation is:

A. Equal to zero if the firm's debt is riskless.

B. The required return on the firm's equity

C. The proportion of the firm financed with equity.

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

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