Which of the following is true regarding debt and equity financing? Group of answer choices

A company with a low tax rate has a greater advantage in using debt financing than a company with a high tax rate

The disadvantage to equity financing is fixed financing cost of dividends

As a company uses more equity financing, the value of the firm always increases

The optimum capital structure is where weighted average cost of capital (WACC) is maximized

The primary trade-off in capital structure decisions is tax savings and financial distress costs of debt