Which of the following statements involving leverage is incorrect? The positive relationship between leverage and shareholder risk is attributable to the frxed interest expense created by debt Managers should choose a debt level that maximizes the total market value of equity When corporate taxes are considered but costs of firlancial distress are ignored, the announcement of a debt issue should cause a firm's stock price to rise According to Modigliani and Miller, leverage should have no effect on a firm's total value, WACC, or stock price when taxes are ignored All else equal, the issuance of debt to repurchase equity will cause an increase in the sensitivity of earnings per share to changes in EBIT