Question: M&M Proposition I 1 with tax implies that the: Multiple Choice cost of capital is the same regardless of the mix of debt and equity

M&M Proposition I1 with tax implies that the:
Multiple Choice
cost of capital is the same regardless of the mix of debt and equity used.
value of an unlevered company equals the value of a levered company plus the value of the interest tax shield.
cost of equity increases as the debt-equity ratio decreases.
value of a company is inversely related to the amount of leverage used by that company.

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