Which of the following propositions concerning the second paper published by Modigliani & Miller in 1963 (MM II) are true?

(i) Corporate taxes influence a firms cost of capital.

(ii) In a world with corporate taxes, firm value increases as the amount of debt in the capital structure increases.

(iii) Given an amount of debt in a levered firms capital structure, a higher marginal corporate tax rate increases the firms value.

(iv) Stockholders receive any value of the tax shield created by higher leverage.

Group of answer choices

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

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

Only (iii) and (iv) are true.

Only (i) and (ii) are true.

All four are true.