MM Proposition I with taxes supports the theory that: Multiple Choice the value of an unlevered firm is equal to the value of a levered firm plus the value of the interest tax shield. O a firm's cost of capital is the same regardless of the mix of debt and equity used by the firm. the value of a firm is inversely related to the amount of leverage used by the firm. O there is a positive linear relationship between the proportion of debt versus equity in a levered firm and the firm's value. a firm's weighted average cost of capital increases as the debt-equity ratio of the firm rises