Modigliani and Miller (1963) argued that in perfect capital market with corporate taxes:

Select one:

a. the value of the firm is maximized when the firm borrows nearly 100%

b. the value of a unlevered firm exceeds the value of a levered firm by the present value of the interest tax shield

c. the value of the firm is independent of how much the firm borrows

d. the firm's WACC will remain constant as the firm uses more debt financing because the cost of equity will increase due to increased financial risk