Which One of These Statements Is Correct

Multiple Choice

Which one of these statements is correct?

A) Firms across all industries in the U.S.tend to have similar debt-to-equity ratios.
B) The banking industry tends to have the lowest debt-to-equity ratio of any U.S.industry.
C) Financial leverage lowers risk to equity holders.
D) MM Propositions ignore bankruptcy costs.
E) MM Propositions without taxes illustrate that a firm's overall cost of capital is affected by leverage.