Which one of the following statements related to the static theory of capital structure is correct? O Afirm begins to lose value as soon as the first dollar of debt is incurred The actual value of a firm continually rises in direct proportion to the increased use of debt. The linear function of a firm's value has a constant positive slope O O A firm's value is maximized when a firm operates at its optimal debt level. O The value of a firm will automatically decrease whenever the debt-equity ratio is decreased