Which of the Following Is True of the Modigliani-Miller Theorem

Which of the following is true of the Modigliani-Miller theorem in case of costless bankruptcy?

A) The loss to the old debt holders would be offset by a gain to the equity holders,leaving the total value of the firm unaltered by this type of capital structure change.
B) If a firm's existing debt holders have a senior claim in the event of bankruptcy,a new debt issue can increase the value of existing debt.
C) The sum of all future cash flows distributed to the firm's debt and equity investors is unaffected by capital structure.
D) If a firm's existing debt holders have a junior claim in the event of bankruptcy,a new debt issue can increase the value of existing equity.