Firm A is financed by 30% debt and by 70% equity. Its rival firm B is financed by 10% debt and 90% equity. Firms A and B operate in the same industry and are very similar in business activities, cash flows, and everything else. After doing some research, you find out that the market perceives Firm A to be more valuable than Firm B. Which statement is true, according to Modigliani-Miller Theorem? This is a signal that Firm A has a lower cost of bankruptcy than Firm B. O Firm A is perceived as more valuable because it has a higher leverage ratio. O This is possible only for a very short time span - the market will soon adjust to have both firms perceived equally valuable. This is a signal that Firm A pays higher taxes than Firm B