The Modigliani-Miller Theorem with Costless Bankruptcy Assumes That

The Modigliani-Miller theorem with costless bankruptcy assumes that:

A) if a firm is unable to meet its debt obligations and goes bankrupt,the equity holders can costlessly transfer ownership and control of the firm's assets at the cost of the debt holders.
B) if a firm is unable to meet its debt obligations and goes bankrupt,the ownership and control of the firm's assets move from the equity holders to the debt holders without costing either.
C) if a firm is unable to meet its debt obligations and goes bankrupt,the debt holders can costlessly takeover the ownership and control of the firm's assets at the cost of the equity holders.
D) if a firm is unable to meet its debt obligations and goes bankrupt,the ownership and control of the firm's assets move from the equity holders to the debt holders at the cost of the government.