Which of the following two statements is correct?

S1: Classical capital structure theory was spearheaded by a paper by Miller and Modigliani (MM); MM argue that capital structure decisions are a result of managers sending signals to the investors in the market using their capital structure decisions.

S2: Based on several restrictive assumptions, including the assumption that there are no taxes (personal and corporate), Miller and Modigliani (MM) argue that firms cannot change their value by making changes to their capital structures.

Group of answer choices

S2 is correct but S1 is false

Both statements are false

S1 is correct but S2 is false

Both statements are correct