23. Whicher the rollowing ate true? Acconding to MM proposisions, in arworld with no waves, the weiphtrd averapc cose an unlevered firm. ii. Leverage can raise a firm's expected eamings pet share and is return on equity, bua. it also increases the volatility of eamings per share and the riskiness of its equityAs a result, in a world with no taxes; shartholders are not better off if the firm tokes on debt, and the value of equity is unchanged. iii. According to MM propositions, in a world with taxes, the weighted average cost of eapital for a levered firm is the same as the weighted avierago cost of capital foe an unlevered firm. iv. In a world with taxes, because interest expense is tax deductible, leverage increases the total amount of income available to all investors. Hence, the firm can increac its value by taking on more debt. v. In a world with taxes, if a firm issues raore debt and uses the peoceeds to pay dividends, the price per share of the firm's stock will rise because of the effect of present value of tax shield. a. i and ii b. iv only c. vonly d. ii only c. ii, iv, and V