Business, 09.08.2021 20:40 icashaypabozp

Which of the following statements are correct in relation to MM Proposition II with no taxes? I. The required return on assets is equal to the weighted average cost of capital. II. Financial risk is determined by the debt-equity ratio. III. Financial risk determines the return on assets. IV. The cost of equity declines when the amount of leverage used by a firm rises.

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Which of the following statements are correct in relation to MM Proposition II with no taxes? I. The...

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