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Pick the correct statement(s) associated with M&M Proposition II with no taxes. 1. Financial risk determines the return on assets. II. Financial risk is determined
Pick the correct statement(s) associated with M&M Proposition II with no taxes. 1. Financial risk determines the return on assets. II. Financial risk is determined by the debt-equity ratio. III. The cost of equity increases when the amount of leverage used by a firm rises. IV. The required return on assets is higher than the weighted average cost of capital. Multiple Choice I only Il only II and III only I and Il only Il and Ill only I and II only I and IV only
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