Imagine a firm considering its capital structure decisions in light of the Modigliani-Miller Propositions. Under the first proposition, which applies in a world without taxes, capital structure is said to be irrelevant when considering the overall value of the firm. But how do the implications change when considering a scenario with taxes? In the context of capital structure, which of the following statements correctly reflects the implications under Modigliani-Miller Proposition II when corporate taxes are introduced?