If someone could help me with these finance problems I would really appreciate it! Pictures are attached, comment below :)

HEM Theory Modigliani and Miller's Irrelevanoe Hypothesis regarding corporate capital structure assumed: (1] no taxes [2] no costs of nancial distress {3} investors can borrow and lend at the same rates as rms (4] no transactions costs. Under these assumptions. which of the following is true? 0 A. As more debt is added to the firm's capital structure: rm value does not vary. WAC: does not vary, the required rate of return on equity increases. 0 B. As more debt is added to the firm's capital structure: rm value does not vary. WAC: does not vary, the required rate of return on equity does not vary. 0 (I. As more debt is added to the firm's capital structure. firm value increases, WACC increases, the required rate of return on equity increases. 0 D. As more debt is added to the firm's capital structure: rm value increase. WAC: decreases, the required rate of return on equity increases. HEM Theory 2 When the assumptions of Modiinani and Miller's Irrelevance Hypothesis regarding corporate capital structure are relaxed so that they are more consistent with real-world conditions, i.e. there are corporate taxes (and interest payments are tax deductible] and there are costs of nancial distress. then which of the following is true? 0 A. Firth value and WAEC are independent of the rm's capital structure. 0 B. Firth value increases and WACE increases initially as more debt is added to the rm's capital structure, however, there comes a point where adding additional debt generates potential costs of nancial distress that outweigh the benets of further reducing taxes. after this point, rm value and WAGE start to decrease as more debt is added. (1. Each rm has an optimal capital structure where WAC: is maximized. 00 D. Firm value increases and WAEE decreases initially as more debt is added to the firm's capital structure, however, there comes a point where adding additional debt generates potential costs of nancial distress that outweigh the benets of further reducing taxes. After this point, rm value starts to decrease and WAEC starts to increase as more debt is added