Which One of the Following Statements Is False According to MM's

Which one of the following statements is false according to MM's proposition I?

A) Firm value is unaffected by the firm's capital structure.
B) Proposition I 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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