9.Which of the following are true according to the Modigliani and Miller propositions? i.In a world without taxes, all else equal, the value of a firm with a low debt-to-equity ratio is higher than...

9.Which of the following are true according to the Modigliani and Miller propositions?

i.In a world without taxes, all else equal, the value of a firm with a low debt-to-equity ratio is higher than the value of a firm with a high debt-to-equity ratio.
ii.In a world without taxes, a firm's cost of equity capital increases as the firm takes on more debt.
iii.In a world with taxes, firm value is maximized when the firm has a low debt-to-equity ratio.

iv.In a world with taxes, a firm's cost of equity capital increases as the firm takes on more debt.
a.ii, iii, and iv, but not i
b.i, iii, and iv, but not ii
c.ii and iv, but not i or iii
d.i, ii, and iii, but not iv