Under Modigliani and Miller's assumption of perfect capital markets, which of the following is NOT CORRECT? The WACC does not change as the weights of debt and equity change O Bankruptcy does not have any costs and just involves a change in ownership Reducing the debt ratio can cause the cost of debt and the cost of equity to decline, even as the WACC stays the same. The cost of debt will be equal to the cost of equity Taxes are irrelevant