M&M Proposition I with no taxes implies that the:

Multiple Choice:

a. weighted average cost of capital decreases as the debt-equity ratio increases.

b. cost of equity increases as the debt-equity ratio decreases.

c. value of an unlevered company equals the value of a levered company plus the value of the interest tax shield.

d. cost of capital is the same regardless of the debt-equity ratio used

e. value of a company is inversely related to the amount of leverage used by that company.

URGENT