Under perfect capital markets with no taxes, Modigliani and Miller argue that:

Select one:

a. no particular capital structure for a firm is superior to any other capital structure for that firm

b. the cost of equity for a levered firm is equal to the firm's unlevered WACC

c. homemade leverage is insufficient to offset a firm's use of leverage

d. the value of a levered firm exceeds the value of the unlevered firm

e. the cost of equity decreases as the debt-equity ratio increases