Which of the following propositions concerning the first paper published by Modigliani & Miller in 1958 (MM I) are true? (i) The firms capital structure does not affect its value. (ii) They assume that there are no corporate taxes. (iii) Because individuals can use homemade leverage strategies, the capital structure is irrelevant. (iv) If the amount of debt in a firms capital structure decreases, its weighted-average-cost-of-capital (WACC) will decrease.

Group of answer choices

Only (i), (iii) and (iv) are true.

Only (ii), (iii) and (iv) are true.

Only (i) and (ii) are true.

All are true.

Only (i), (ii) and (iii) are true.