Time left $0-37$:$13$

MM Proposition I with no tox supports the argument that:

Select one:

a$.$ it is completely irrelevant how a firm arranges its finances.

b$.$ a firm should borrow money to the point where the tax benefit from debt is equal to the cost of the increased probability of financial distress.

c$.$ the cost of equity rises as leverage rises.

d$.$ business risk determines the return on assets.