​M&M's Proposition II suggests that in a world of no taxes and no​ bankruptcy, . A. in simple​ terms, as the firm adds more debt to the financing​ mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio​ is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements​ A, B, and C are all incorrect.