Kizspy | Question: 19
(Choose 1 answer)
M&M Proposition 2 states that the cost of a firm's common stock is directly related to:
A. the debt-to-equity ratio.
B. the required rate of return on the firm's underlying assets.
C. the return of the market index.
D. the debt-to-equity ratio and the required rate of return on the firm's underlying assets.
