MSM Proposition Il with tawes:

Multiple Choice

has the same general implications as MAM Proposition II withoat tawes.

states that a firm's capital struchure is irrelevant.

supports the argument that business risk is determined by the capital structure decision.

supports the argument that the cost of equity decreases as the debe$-$equity rasio increases.

concludes that the capital structure decision is irrelevant to the value of a frm $.$