Which One of the Following Is an Implication of M&M

Multiple Choice

Which one of the following is an implication of M&M Proposition II,without taxes?

A) The risk of equity depends on both the degree of financial leverage and the riskiness of the firm's operations.
B) WACC decreases as the debt-equity ratio increases.
C) WACC is unaffected by the capital structure of a firm.
D) A firm's optimal capital structure is 100 per cent debt.
E) A firm's capital structure is irrelevant.