The Modigliani$-$Miller theory with taxes implies that firms should issue maximum debt. In practice, this is not true because

A$.$

both debt is more risky than equity; and bankruptcy is a disadvantage to debt.

B$.$

bankruptcy is a disadvantage to debt.

C$.$

debt is more risky than equity.

D$.$

firms will incur large agency costs of short$-$term debt by issuing long term debt.