Modigliani-Miller Propositions

In the context of capital structure decisions, the Modigliani-Miller proposition asserts that, under certain assumptions, the value of a firm is independent of its capital structure. This foundational theory in corporate finance suggests that it is irrelevant whether a firm is financed by debt or equity. Consider the following statements regarding the Modigliani-Miller propositions:

Which of the following statements is true regarding the propositions?