M&m proposition i with no tax supports the argument that
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MM Proposition II with no taxes supports the argument that a firm's:
a. unlevered equity is risk-free.
b. cost of equity is inversely related to the firm's debt-equity level.
c. cost of equity is unaffected by the firm's unlevered cost of capital.
d. Incorrect WACC will exceed the unlevered firm's cost of equity.
e. WACC remains constant even if the firm changes its capital structure.