M&M Proposition II, without taxes, is the proposition that:

A) The capital structure of a firm has no effect on the firm's value.

B) The cost of equity depends on the return on debt, the debt-equity ratio, and the tax rate.

C) A firm's cost of equity is a linear function with a slope equal to (RA - RD).

D) The cost of equity is equivalent to the required rate of return on a firm's assets.

E) The size of the pie does not depend on how the pie is sliced.