4. M & M Theorem I Proposition I with no tax supports the argument that: A. business risk determines the return on assets B. the cost of equity rises as leverage rises. C. the debt-equity ratio of a firm is completely irrelevant D. a firm should borrow money to the point where the tax benefit from debt is equal to the cost of the increased probability of financial distress. 5. The concept of homemade leverage is most associated with: A. M & M Proposition I with no tax. B. M & M Proposition 11 with no tax. C. M & M Proposition I with tax. D. M & M Proposition II with tax