Remaining me: 16 minutes, seconds Question Completion State QUESTION 1 MAM Proposition is the presti the capital structure of treatest on the the cost oftendente Orm's cost of equity is a marche Ore of the depend on the QUESTION 2 Sand an MM hash QUESTIONS Remaining Time: 16 minutes, 43 seconds. Question Completion Status: QUESTION 1 M&M Proposition Il is the proposition that: the capital structure of a firm has no effect on the firm's value. O the cost of equity depends on the return on debt, the debt-equity ratio, and the tax rate. a firm's cost of equity is a linear function with a slope equal to (RA-RD). O the cost of equity is equivalent to the required rate of return on a firm's assets. the size of the pie does not depend on how the pie is sliced. QUESTION 2 Based on M&M Proposition Il with taxes, the weighted average cost of capital: is equal to the after-tax cost of debt. has a linear relationship with the cost of equity capital. is unaffected by the tax rate. decreases as the debt-equity ratio increases. is equal to Ru (1-TC)