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Based on 1963 MM Theory, a firm's value will increases when it uses the leverage. Which of the following is/are CORRECT? I. 1958MM theory states

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image text in transcribed Based on 1963 MM Theory, a firm's value will increases when it uses the leverage. Which of the following is/are CORRECT? I. 1958MM theory states capital structure is irrelevant. II. 1963MM theory implies that 100% debt is optimal capital structure for the firm. III. 1963MM theory considers both corporate tax and financial distress cost. In 1977 Miller Model shows the debt financing no longer provides any benefit to the firm

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