Question: With risky debt and MM's Proposition II, the expected return on assets ________ as the debt-equity ratio ________. Group of answer choices a.increases; decreases b.decreases;

With risky debt and MM's Proposition II, the expected return on assets ________ as the debt-equity ratio ________.

Group of answer choices

a.increases; decreases

b.decreases; increases

c.remains constant; increases

d.increases; increases

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