MM Proposition II is the proposition that:

a$.$ supports the argument that the size of the pie does not depend on how the pie is sliced.

b$.$ supports the argument that the capital structure of a firm is irrelevant to the value of the firm.

c$.$ a firm s cost of equity capital is a positive linear function of the firm s capital structure.

d$.$ the cost of equity is equivalent to the required return on the total assets of a firm.

e$.$ the cost of equity depends on the return on debt, the debt$-$equity ratio and the tax rate.