18. Which of the following statements is true?

a. The signaling theory of capital structure says that the stock price will decrease when a company issues new stock.

b. The interest tax shield is the amount of interest the company pays to its bond holders.

c. The trade-off theory of capital structure trades off the agency costs of increased debt versus the monitoring costs of increased debt.

d. The interest tax shield is valuable for a firm because it allows individual investors to deduct the interest payments they receive from their taxes.

e. In the Modigliani Miller Model with taxes for capital structure, the value of a levered firm is the value of an unlevered firm plus the value of the debt.