Taxes implies that the required return on equity

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Reference no: EM131334472

MM Proposition II without taxes implies that the required return on equity is:

a result of homemade leverage.

inversely related to the firm's debt-to-equity ratio.

independent of the firm's capital structure.

a linear function of the firm's debt-to-equity ratio.

a linear function of the market's rate of interest.

Reference no: EM131334472

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