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MM Proposition I with no tax supports the argument that: the cost of equity rises as leverage rises. it is completely irrelevant how a firm

MM Proposition I with no tax supports the argument that:

the cost of equity rises as leverage rises.

it is completely irrelevant how a firm arranges its finances.

financial risk is determined by the debt-equity ratio.

a firm should borrow money up to the point where the cost of debt equals the cost of equity.

business risk determines the return on assets.

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