Implications of Modigliani-Miller Proposition I

In the context of the Modigliani-Miller propositions, imagine a firm that is considering adjusting its capital structure by increasing its debt-to-equity ratio. According to Miller's theorem, which addresses taxation, the choice of capital structure will impact the firm's value in a manner that considers the benefits of the tax shield on debt. However, the propositions also encompass the notion of perfect capital markets and the irrelevance of capital structure in a world without taxes.

Based on this framework, which of the following statements accurately reflects the implications of Modigliani-Miller's Proposition I (without taxes) when a firm considers changing its capital structure?