Which of the following statements concerning corporate capital structure is true?

(a) The imputation system in Australia may lead to an increase in the leverage ratio of Australian firms.

(b) Jensen's Free Cash Flow theory argues that the use of debt financing can add value by forcing managers to reduce free cash flows that might otherwise be wasted.

(c) The trade-off theory of capital structure implies that companies will decrease the amount of debt in their capital structure in response to legislation that will increase the corporate tax rate.

(d) Statements (b) and (c) are correct.

(e) All of statements (a), (b), and (c) are correct.