Consider the pie models of corporate structure. considering the same firm, what is the difference between the all-equity pie and the levered pie a firm in the presence of taxes?

a. The size of the pie is smaller than the all-equity pie.

b. Taxes eat a slice of the levered pie but pass by all the all-equity pie.

c. Both pies are the same and are sliced indentically.

d. Taxes east a slice of both pies but take a lrager slice of the all-equity pie.