M&M Proposition II with no tax states that a firm's cost of equity is dependent upon the firm's interest tax shield.

Name: M&M Proposition II with no tax states that a firm's cost of equity is dependent upon the firm's interest tax shield.
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M&M Proposition II with no tax states that a firm's cost of equity is dependent upon its capital structure due to the increased financial risk from debt, not the interest tax shield, which is considered under scenarios with taxes.

M&M Proposition II with No Tax States That a Firm's