M$$&$$M Proposition II$,$ without taxes, demonstrates that:

Multiple Choice

the capital structure of a company has no effect on that company's value.

the cost of equity depends on the return on debt, the debt$-$equity ratio, and the tax rate.

a company's cost of equity is a linear function with a slope equal to $($RA$$RD$)($RA$$RD$).$

the cost of equity is equivalent to the required rate of return on assets.

the size of the pie does not depend on how the pie is sliced.

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