the real$-$world economy is complex and that complexity affects firms capital structure choices. some examples of that complexity include the fact that there are corporate taxes and that intrest payments are tax deductible. additionally there are costs of financial distress when firms are having difficulty paying their bills and there is asymmetric information between investors and corporate insiders, etc. in this real world environment, which of the following are true? a$.$ each firm has an optimal capital structure where WACC is maximized b$.$ each firm has an optimal capital structure where firm value is minimized. c$.$ firm value increases and WACC decreases initially as more debt is added to the firms capital structure. however, there comes a point where adding additional debt generates potential costs of financial distress that outweigh the benefits of further reducing taxes. after this point firm value starts to decrease and WACC starts to increase as more debt is addedd. firm value and WACC are independent of the firms capital structure. e$.$ firm value increases and WACC increases initially as more debt is added to the firms capital structure. however, there comes a point where adding additional debt generates potential costs of financial distress that outweigh the benefits of further reducing taxes. after this point firm value starts to decrease and WACC starts to decrease as more debt is added