13. Which of the followings about M&M Proposition II are correct?

i. Supports the argument that the capital structure of a firm is irrelevant to the value of the firm.

ii. The cost of equity depends on the return on debt, the debt-equity ratio, and the tax rate.

iii. A firm's cost of equity capital is a positive linear function of the firm's capital structure (i.e. debt-equity ratio).

A. i and ii

B. ii and iii

C. i and iii