Consider an environment where corporate taxes and costs of bankruptcy or financial distress do not exist. 1) Describe and explain in words and equation Proposition I of Modigliani and Miller (1958). 2) Describe and explain in words and equation Proposition Il of Modigliani and Miller (1958) 3) Explain in words, equation and diagram the effects of debt on firm value and weighted average cost of capital to integrate the intuitions of Propositions I and II. Consider an environment where there are corporate taxes denoted as tc, but no costs of bankruptcy or financial distress. EBIT denotes earnings before interest and taxes 1) Describe and explain in words and equation Proposition I of Modigliani and Miller (1963). 2) Describe and explain in words and equation Proposition Il of Modigliani and Miller (1963)