MM Proposition II without taxes is the proposition that

Multiple Choice

the cost of equity depends on the market value of the firm's assets.

supports the argument that the capital structure of a firm is irrelevant to the value of the firm.

the cost of levered equity is determined solely by the return on debt, the debt$-$equity ratio, and the tax rate.

a firm's cost of equity increases in direct relationship to the increase in debt.

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

Incorrect