Q1 1 Point MM Proposition I in a world without taxes is used to describe: Choice 1 of 5:Both a) and b) Choice 2 of 5:All of these statements are correct. Choice 3 of 5:Leverage does not affect the value of the firm. Choice 4 of 5:The value of an unlevered firm equals that of a levered firm. Choice 5 of 5:One capital structure is as good as another. Q2 1 Point What is the absolute priority rule of the following claims once a corporation is determined to be bankrupt? Choice 1 of 5:Administrative expenses, wage claims, government tax claims, debt holder and then equity holder claims Choice 2 of 5:Wage claims, administrative expenses, debt holder claims, equity holder claims and government tax claims Choice 3 of 5:None of these are correct. Choice 4 of 5:Wage claims, administrative expenses, debt holder claims, government tax claims and equity holder claims