An Analyst makes the following statements about Modigliani and Miller ("MM") capital structure theory: Statement li MM theory with corporate taxes concluded that the optimal capital structure is I00% debt. Statement 2: MM theory no taxes concluded that the WACC is unchanged, and a firm's value will decrease when higher percentage of debt is used to finance capital needs. Are the two statements correct or incorrect? A) Statement 1 is correct, statement 2 is incorrect. B) Statement 1 is incorrect, statement 2 is correct. C) Both statements are correct D) Both statements are incorrect