Please open attachment to answer selected finance question. Please answer in 4-5 paragraphs. Thanks.

the Nobel Prize winning Modigliani & Miller Theory states that a firm's capital structure does not matter. It is based on three key assumptions: 1. No income taxes 2. Equal borrowing cost- individuals can borrow at the same interest rate as corporations. 3. Perfect markets: There are no bankruptcy, transaction, contracting, or agency costs. Are these assumptions reasonable? What are the implications if the assumptions do not hold