M&M Proposition III (no tax) says a. The return on equity is positively related to...

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Finance

M&M Proposition III (no tax) says

a. The return on equity is positively related to leverage.

b. The return on equity is negatively related to leverage.

c. The market value of the firm is independent of its capital structure.

d. The weighted average cost of capital is constant.

e. None of the above

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