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Which of the following is not true of saliva?
M&M Proposition I
A principle in corporate finance that asserts the market value of a firm is unaffected by the capital structure, assuming no taxes and perfect markets.
M&M Proposition II
A theory proposing that the cost of equity increases with the level of debt in a company, making the firm's weighted average cost of capital remain unchanged.
Cost of Equity
The return rate that shareholders require to invest in a company's equity, taking into account the risk associated with the investment.
Cost of Debt
The effective rate that a company pays on its current debt, incorporating both interest payments and any other required repayments.
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