Underwriting where the syndicate buys the entire issue from the issuing firm, assuming full financial responsibility for any unsold shares, is called a offering. Multiple Choice Shelf. Private placement. Direct rights. Best efforts. Firm commitment. M&M Proposition II with tax supports the argument that a firm's: Multiple Choice Weighted average cost of the capital remains constant as the debt-equity ratio rises. O Cost of equity decreases as its weighted average cost of capital decreases. Cost of debt varies inversely with the debt-equity ratio. Use of debt decreases the value of the firm. Cost of equity increases as the firm increases its debt-equity ratio