Which of the following statements is CORRECT? If possible, companies should never borrow money to finance their operations. In Modigliani and Miller's proposition, the value of a levered firm is greater than the value of an unlevered firm when there are positive corporate taxes. The use of equity financing increases financial risk more than debt financing. Other things held constant, if corporate tax rates declined, then the Modigliani-Miller tax-adjusted tradeoff theory would suggest that firms should increase thet use of debt. Hamada model states that increasing the equity ratio in the capital structure increases beta