What Causes the Change in Optimal Strategy When Taxes Are

What causes the change in optimal strategy when taxes are added back to the M&M theorem?

A) The fact that we have added taxation differentially
B) The fact that both dividends and interest are taxable to the receiver
C) The fact that it changes the effect that an increase in leverage has on the stockholders' expected returns
D) The fact that it changes the volatility of stockholders' expected returns

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