MM Propositions without Taxes imply if a company uses more leverage:

I. its WACC will be lower.
II. its value will increase.
III. its equity beta will increase.
IV. its debt cost will increase.

Correct Answer: III only

MM Propositions without Taxes state a change in capital structure has no impact on the value of the company (thus its WACC). However, higher leverage will raise the cost of equity and its beta.