The cost of equity for M & M Proposition II, without taxes, is best shown as: Multiple Choice RE=RA+ (RA - RD) * (D/E) * (1 - Tc) RE=RA+ (RA - Rp) + (D/E) * (1 - Tc) RE=RA (RA - Rp) (D/E) RE=RA + (RA-RD) * (D/E) O RE=RA/ (RA - Rp) (D/E)