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 states that a firm's cost of equity is dependent upon the required rate of return on the firm's assets, regardless of whether the firm operates in a tax-free or taxed environment.

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