Consider a company with no taxes and a perfect capital market, as proposed by the Modigliani-Miller theorem. This theorem asserts that in such an environment, the value of a company is unaffected by its capital structure. Assume Company ABC is considering two capital structures: one with 100% equity and another with 50% debt and 50% equity. Given the assumptions of the Modigliani-Miller proposition, which of the following statements is most accurate?