Question 16 (1 point) of Capita In relation to the Trade-Off Theory of Capital Structure, which one of the following statements is TRUE? (A) As firms go from having minor levels of debt to very high levels of debt, the cost of equity decreases (B) Firm value is maximised when weighted average cost of capital is maximised (C) As firms go from having zero debt to minor levels of debt, the weighted average cost of capital increases (D) As a highly levered firm's financial leverage continues to crease, the cost of equity rises at an increasing rate