According to Modigliani and Miller, in a world with taxes and bankruptcy costs, a firms value begins to decrease after reaching a certain debt-to-equity ratio because:

A) The cost of debt overtakes the cost of equity

B) The cost of financial distress overtakes the savings generated by its interest tax shield

C) The cash flow to bondholders overtakes the cash flow to shareholders

D) Its tax payments overtake its EBIT

E) None of the above