In a world where there exist taxes and bankruptcy costs but no other imperfections, which one of the following statements is CORRECT?

Group of answer choices

A. A very low financial leverage is likely to be the optimal capital structure.

B. A very high financial leverage is likely to be the optimal capital structure.

C. A financial leverage that is neither too low nor too high is likely to be the optimal capital structure.

D. The choice of financial leverage does not matter because it neither creates nor destroys value.