Which statement is correct regarding the Modigliani and Miller's theorem? BIC Modiani and Miller's conclusion verified the common view, which stated that even with perfect cop al markets, leverage would afecta firm's value 4. 1 2 N3 B Leverage decreases the risk of the equity of a firm (c Because the cash flows of the debt and equity sum to the cash flows of the project, by the Law of One Price, the combined Values of debrand equity must be equal to the cash flows of the project If there is zero probably the firm will default on detit, then leer does not in the fully PE Which statement is correct regarding the Modigliani and Miller's theorem? A. Modigliani and Miller's conclusion verified the common view, which stated that even with perfect capital markets, leverage would affect a firm's value. B Leverage decreases the risk of the equity of a firm C. Because the cash flows of the debt and equity sum to the cash flows of the project, by the Law of One Price, the combined values of debt and equity must be equal to the cash flows of the project. D. If there is zero probability that a firm will default on its debt, then leverage does not increases the risk of equity