Question: The pink line in the graph below can be explained by: Cost of capital (%) RA WACC Rox (1-T Debt-equity ratio (D/E) a. M&M Proposition

The pink line in the graph below can be explained by:

The pink line in the graph below can be explained by: Cost of capital (%) RA WACC Rox (1-T Debt-equity ratio (D/E) a. M&M Proposition (with taxes) O b. Pecking order Theory O C. M&M Proposition (no taxes) d. Static Theory O e. CAPM Theory

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