Question 9 Which of the following statements about Modigliani and Miller (M&M)'s capital structure propositions is most likely to be true? A According to M&M (1958), a firm with a higher financial gearing must always have a higher market value BM&M (1958) amended their model by recognising the existence of corporate tax According to M&M (1963), a company's weighted average cost of capital remains unchanged at all levels of gearing According to M&M (1963), there is a linear relationship between the cost of equity and the level of gearing E Bankruptcy costs had been included in both M&M (1958) and M&M (1963) D