Understanding Modigliani-Miller Propositions

In the context of Corporate Finance, the Modigliani-Miller propositions provide a foundational theory regarding capital structure. According to the Modigliani-Miller theorem in a world with no taxes, the value of a firm is unaffected by its capital structure. This means that it should not matter whether a firm finances itself through debt or equity. Consider a company, ABC Corp, which has various options to raise capital, including equity and debt.

Given this framework, what statement accurately reflects the Modigliani-Miller propositions concerning firm value and capital structure?