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27. Which one of the following is the most inappropriate about the M\&M Proposition I: "The value of the firm is NOT affected by changes in the capital structure?" A) This is a theory based on the perfect capital market where there are no corporate taxes and bankruptcy costs (and so on). B) An increase in financial leverage increases the risk of equity, and thus the required rate of return on equity increases. C) Two firms generating the same amount of cash flows with the same business risk will have the same firm value. D) By changing the capital structure of a company, (stock) investors can sometimes obtain a higher portfolio performance