Need an explanation please

Which of the following statements is FALSE with regards to taxes and Modigliani and Miller proposition? Select one: O a. To compute the increase in the firm's total value associated with the interest tax shield, we need to forecast a firm's debt and its interest payments. O b. Because the firm's free cash flow is computed without considering the firm's leverage, we account for the benefit of the interest tax shield by calculating the WACC using the before tax cost of debt. O c. The reduction in the WACC increases with the amount of debt financing. Od. The total value of the levered firm exceeds the value of the firm with no leverage due to the present value of the tax savings from debt. O e. By increasing the amount paid to debt holders through interest payments, the amount of the pre-tax cash flows that must be paid as taxes does not increase Of. As Modigliani and Miller made clear in their original work, capital structure doesn't matters in perfect capital markets. Thus, if capital structure does matter, then it must stem from a market imperfection O Corporate taxes lower the effective cost of debt financing, which translates into a reduction in the weighted average cost of capital