Implications of Modigliani-Miller Proposition I

ABC Corporation is evaluating its capital structure and considering taking on additional debt to finance a new project. According to the Modigliani-Miller Proposition I, under what conditions would the value of ABC Corporation's equity remain unchanged, despite the increase in leverage?

Furthermore, assume that the market is perfect, with no taxes, transaction costs, or information asymmetry. Additionally, the firm's operations remain unchanged, and the new debt will be used solely for investment purposes (without altering its risk profile). Which of the following statements best reflects the implications of this scenario in light of the Modigliani-Miller Proposition?