Question 2 1 pts The next two questions relate to the effects of leverage on cost of equity, WACC, and firm value under different scenarios. First, assume that you are in a perfect MM world (no taxes, no bankruptcy, etc...). Then, as leverage increases: Cost of equity and WACC increase; firm value decreases Cost of equity increases; WACC and firm value are unchanged . Cost of equity and WACC decrease; firm value increases Cost of equity, WACC, and firm value are unchanged Cost of equity decreases; WACC and firm value are unchanged