With Respect to Financial Risk, Modigliani and Miller Concluded That

With respect to financial risk, Modigliani and Miller concluded that:

A) if an interest payment is tax deductible, an all debt capital structure is optimal.
B) an all-debt structure is theoretically not feasible.
C) if an interest payment is not tax deductible, a no debt capital structure is optimal.
D) if an interest payment is tax deductible, debt and equity should be evenly divided.