1. According to MM Proposition I with taxes:

   		firm value is maximized when the firm is all-equity financed.
   		increasing the debt-equity ratio increases firm value.
   		the unlevered cost of equity is equal to RWACC.
   		capital structure does not affect firm value.
   		the cost of equity rises as the debt-equity ratio increases.

2. According to MM Proposition II:

   		the cost of levered equity depends solely on the return on debt, the debt-equity ratio, and the tax rate.
   		the cost of debt is inversely related to a firms debt-equity ratio.
   		the cost of equity is equivalent to the required return on the total assets of a levered firm.
   		the capital structure of a firm is irrelevant to the value of the firm.
   		a firms cost of equity is a positive linear function of the firm's capital structure.