Which of the Following Statements Is False Regarding MM's Proposition

Which of the following statements is false regarding MM's proposition I?

A) Firm value is unaffected by its capital structure.
B) It is also called the debt irrelevance proposition.
C) Shareholders should care about the firm's debt policy.
D) After restructuring, the firm's value should be the same as it was prior to restructuring.

Correct Answer:

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