M&M Proposition I with tax implies that:

A. The value of a firm is inversely related to the amount of leverage used by the firm.
B. A firm's cost of capital is the same regardless of the mix of debt and equity used by the firm.
C. A firm's cost of equity increases as the debt-equity ratio of the firm decreases.
D. A firm's weighted average cost of capital decreases as the firm's debt-equity ratio increases.
E. The value of an unlevered firm is equal to the value of a levered firm plus the value of the interest tax shield.

Match the given situations to the type of risks that a business may face while taking credit.(there's not just one answer)1. beta ltd. had taken a loan from a bankfor a period of 15 years, but its salesare gradually showing a decline.2. alpha ltd. has taken a loan for increasing its production and sales,but it has not conducted any researchbefore making this decision.3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession.4. delphi ltd. has taken a short-term loanfrom the bank, but its supply chain logistics are not in place.a. foreign exchange riskb. operational riskc. term of loan riskd. revenue projections risk