5.

Which one of these presents the idea that the cost of equity is a positive linear function of capital structure?

A.	MM Proposition I without taxes

B.	MM Proposition II with and without taxes

C.	Capital asset pricing model

D.	MM Proposition I with taxes

E.	Homemade leverage

6.

Which one of these represents the difference between the value of a levered and an unlevered firm?

A.

R0 - RS

B.

R tcB

C.

VU +R tcB

D.	B/S(1 - tc)( R0 - RS)

E.

tcB