Which of the following statements regarding the capital structure is CORRECT?

Group of answer choices

According to the M&M theory under perfect market assumptions, the value of a firm with no debt is less than that with $100\%$ debt.

The pecking order model predicts that the equity financing is more preferred to debt financing.

According to the static tradeoff model, a firm's optimal capital structure can be obtained by considering the debt$-$related costs only.

According to the M&M theory, if only corporate taxes are considered, the optimal capital structure is one with $100\%$ debt financing.

A firm's optimal capital structure is one that maximizes both its expected EPS and stock price.