According to Modigliani and Miller,altering a Firm's Capital Structure Will

According to Modigliani and Miller,altering a firm's capital structure will not change a firm's value because

A) taxes have no effect on capital structure decisions.
B) the value of a firm is based on the earnings power of its assets.
C) markets are not efficient and shareholders can be fooled by capital structure changes.
D) bankruptcy costs rise when debt levels increase.
E) the cost of equity falls as more debt is issued.