Which of the following statements are true in a perfect capital market? a) The value of the firm is independent of its capital structure. b) There is no financial risk, so the cost of equity is independent of the firm's capital structure. c) The WACC falls as leverage increases, reflecting the tax advantage of debt financing. d) All of the above. Question 8 [1 mark] Which statement below is consistent with the assumption that the cost of debt is the same, regardless of the level of gearing? (a) The corporate tax rate is zero. (b) There is no possibility of financial distress. (c) A dividend imputation tax system eliminates the benefits of debt finance. (d) Debtholders receive distributions in priority to equity holders