MM Proposition I with Corporate Taxes States That

MM Proposition I with corporate taxes states that

A) capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.
B) by raising the debt-to-equity ratio, the firm can lower its taxes and thereby increase its total value.
C) firm value is maximized by using an all-equity capital structure.
D) capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield; and, by raising the debt-to-equity ratio, the firm can lower its taxes and thereby increase its total value.