How many statements below are correct about the Modigliani$-$Miller theorem? $(5$ points$)$

i$.$ The theorem is not an exact description of reality.

ii$.$ The theorem provides a benchmark to understand how the capital structure could affect

WACC.

iii. The theorem implies that firms have benefited from financing with debt due to a higher

required rate of return on debt compared with equity.

iv$.$ The value of the firm is not affected by its capital structure under any assumptions.

a$.$ zero statements

b$.$ one statement

c$.$ two statements

d$.$ three statements

e$.$ four statements.