Which of the following statements is correct? A) Corporate taxation can generate tax savings to the unlevered firm. Therefore, the optimal capital structure should be financed by equity entirely. B) Corporate taxation can generate tax saving to the levered firm. Therefore, the optimal capital structure should exclude debt to completely offset the tax liability. C) Corporate taxation can generate tax saving to the levered firm. Therefore, the optimal capital structure includes enough debt to completely offset the tax liability. D) None of the above.