Which of the following statements is empirically TRUE regarding the leverage firms take and its effect on the taxes firms pay (based on graphs presented in class)?

A) On average, firms take leverage to the point that interest payments reduce their taxes, but not offset 100% of their taxes

B) On average, firms do not take any advantage of the interest tax shield

C) On average, firms have reduced their leverage over the last 50 years in response to lower tax rates

D) On average, firms take leverage to the point that interest payments reduce their taxes to zero

E) On average, firms take leverage to the point that their WACC is the same as their expected return on assets