Question M1 [5 Points] Which of the following is True?

a) In a Modigliani Miller setting with perfect markets and no taxation, the expected return on assets is the same as the expected return and the weighted average cost of capital.

b) In a Modigliani Miller setting with perfect markets and no taxation, the unlevered return on assets is the same as the levered return on equity.

c) In a Modigliani Miller setting with perfect markets and no taxation, the weighted average cost of capital is the same as the levered return on equity.

d) Both a) and b).