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Proposition II from M&M says that the cost of equity is a function of which of the items below? A. The cost of debt B.

Proposition II from M&M says that the cost of equity is a function of which of the items below?

A. The cost of debt

B. The required return on assets (which is the same for firms with identical assets or investment choices)

C.The debtequity ratio of the firm

D. All of these

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