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mash [69]
2 years ago
6

Based on M&M Proposition 2 with taxes, the weighted average cost of capital:

Business
1 answer:
balu736 [363]2 years ago
7 0

Answer:

The correct answer is D

Explanation:

The M and M proposition 2 states the cost of equity of the company. The rate of return required or needed which is grounded or based on the risk level linked or associated with the investment the historical volatility.

The M and M proposition 2 states with the taxes, the weighted average cost of capital decreased or reduced as the ratio of debt to equity increases.

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