Which of the following statements is true? A) In a perfect capital market, a firm can increase its value by issuing debt (rather than equity) to finance a project, because the cost of debt (rp) is always smaller than the cost of equity (TE). B) In a perfect capital market, purely financial transactions always have a strictly positive NPV. C) Modigliani Miller Proposition II, whereby the cost of equity increases in leverage, is only valid in the presence of bankruptcy costs. D) Statements A, B, and C are false,