Question 20 of 28 Evaluate the following statements about MM Proposition I regarding capital structure: (1). MM Proposition I holds even if a firm might default on its debt (II). MM Proposition I with regard to capital structure assumes CAPM being the correct model O A. (1) is false, and (II) is true. OB. Both (1) and (II) are true. C. Both (I) and (II) are false. D. (I) is true, and (II) is false. Reset Selection