For the Static Model of Capital Structure, which one of the following statements are correct?

Select one: a. A firms cost of equity and debt is increased by its bankruptcy risk

b. The model assumes no income taxes and bankruptcy costs

c. The value of the firm is based on its expected future cash flows not capital structure

d. The value of the firm is unaffected by whether you finance the firm by debt or equity

e. The size of the pie matters not how it is divided between creditors and owners