Consider both corporate taxes and financial distress costs. The optimal capital structure theory illustrates that:

		a) a firm's value and its weighted average cost of capital are inversely related.
		b)a firm's value and its tax rate are inversely related.
		c)the maximum value of a firm is obtained when a firm is financed solely with debt.
		d)the value of a firm rises as both the interest rate on debt and the tax rate rise.