The Modigliani and Miller original proposition II states that the value of the firm depends on three things: the required rate of return on the firm's assets,the firm's cost of debt,and the firm's debt-to-equity ratio.

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Modigliani and Miller's Proposition II states that the cost of equity is a linear function of the firm's debt-to-equity ratio, and the firm's value is influenced by the required return on assets, cost of debt, and debt-to-equity ratio.

The Modigliani and Miller Original Proposition II States That the Value