M&M Proposition I with No Tax Supports the Argument That

question 84

Multiple Choice

M&M Proposition I with no tax supports the argument that:

• A) business risk has no effect on the return on assets.
• B) the cost of equity rises as leverage rises.
• C) a company's debt-equity ratio is completely irrelevant.
• D) business risk is irrelevant.
• E) homemade leverage is irrelevant.

---

Definitions:

Indigenous Faiths

Religious beliefs and practices that originate and are practiced by indigenous peoples, often closely tied to nature, ancestors, and community traditions.

Diabetes Mellitus

A metabolic disease characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion or action.

Indigenous People

Ethnic groups who are the original inhabitants of a given region, maintaining traditions or other aspects of an early culture that is associated with a specific territory.

Urban Setting

A geographical area characterized by high density of human structures and population compared to areas surrounding it, often associated with cities or towns.