Value MM Result Incorporating the Effects of Corporate Taxation: Value 1 There Were No Bankruptcy-Related Costs B Actual Value Value with Zero Debt Value if the Firm Used No Financial Leverage 0 Leverage + C 1 D A) Bankruptcy costs outweigh tax advantage of debt. B) Bankruptcy costs are insignificant. Value of firm is minimum. D) Firm achieves its optimal capital structure. E) Firm's value of debt is zero