Question: M Proposition II is the proposition that: a . the cost of levered equity depends solely on the return on debt, the debtequity b .

M Proposition II is the proposition that:
a. the cost of levered equity depends solely on the return on debt, the debtequity
b. a firm's cost of equity capital is a positive linear function of the firms appols ratio, and the tax rate.
C. supports the argument that the size of the pie does not depend on how structure. sliced.
d. supports the argument that the capital structure of a firm is infereant siced. the firm.
M Proposition II is the proposition that: a . the

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