Topic Corporate Finance. Please answer multiple choice question:

Which of the following is False? a) Modigliani and Miller's conclusions in the presence of taxation, agree with the common view which states that leverage would affect a firm's value. b) Leverage increases the risk of equity even when there is risk that the firm may default. c) The expected return of equity increases in leverage, since investors require a higher expected return to compensate for the increased risk in asset return. d) Both a) and c)