Which of the following statements is false: Group of answer choices Even after relaxing the MM assumption of no taxes, it can be observed that restructuring does not affect the value of the firm. The "trade-off theory" of capital structure and the concept of a cost for financial distress suggest that firms have an optimal level of debt. The pecking-order theory of capital structure depicts the fact that firms prefer internal financing to avoid sending out adverse signals that may lower the stock price. When additional borrowing causes the probability of financial distress to increase rapidly, the potential costs of distress begin to take a substantial bite out of firm value