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According to MM Proposition II with no taxes, the: required return on assets exceeds the weighted average cost of capital. required return on equity is

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According to MM Proposition II with no taxes, the: required return on assets exceeds the weighted average cost of capital. required return on equity is a linear function of the firm's debt-equity ratio. cost of equity in inversely related to the firm's debt-equity ratio. cost of debt must equal the cost of equity. return on assets is determined by financial risk

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