Question: MM Proposition I without taxes supports the argument that Multiple Choice business risk determines the return on assets. it is completely irrelevant whether a firm

MM Proposition I without taxes supports the argument that
Multiple Choice
business risk determines the return on assets.
it is completely irrelevant whether a firm uses debt or equity financing.
the cost of equity rises as leverage rises.
a firm should borrow money up to the point where the cost of debt equals the cost of equity.
financial risk is determined by the debt-equity ratio.

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