Describe the use of financial leverage on firm's value (proposition 1) and firm's cost of c (proposition 2) in light of Modigliani and Miller theory under the following assumptions a) In the absence of corporate taxes and bankruptcy cost. What would be the optimal structure in this case? Explain with equations and figures. b) In the presence of corporate taxes and bankruptcy cost, what might be the extra bene firm incorporates? What would be the optimal capital structure in this case? Explai equations and figures