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How many statements below are correct about the Modigliani - Miller theorem? ( 5 points ) i . The theorem is not an exact description

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.
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