29) According to M&M prop. II (wl & wlo taxes), what increases as leverage increases? (2 pts) a) The cost of debt b) The cost of equity c) The number of shares 30) What is the "pecking order" of finance (how do firms prefer to finance themselves)? From left to right, left being their #1 preference. (2 pts) a) Equity > Debt > Internal Funds b) Debt > Internal Funds > Equity c) Internal Funds > Debt > Equity d) Internal Funds > Equity > Debt