1. What is the basic conclusion of the original Modigliani and Miller Proposition I? 2. Deriving from the conclusion of Proposition I, what is the crux of M&M Proposition II? What is the natural...

2. Deriving from the conclusion of Proposition I, what is the crux of M&M Proposition II? What is the natural relationship between the required returns on debt and on equity that results from Proposition II?