M&M Proposition II with no tax states that a firm's cost of equity is dependent upon the required rate of return on the firm's assets.

Name: M&M Proposition II with no tax states that a firm's cost of equity is dependent upon the required rate of return on the firm's assets.
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M&M Proposition II without taxes posits that the cost of equity for a firm increases linearly as the firm increases its debt relative to equity, reflecting the required rate of return on the firm's assets based on its risk.

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