Explain the M-M hypothesis indicating that financial leverage does not have an influence on the value of the corporate wealth. Is this true when taxes exist? “Financial leverage reduces the WACC but...

Explain the M-M hypothesis indicating that financial leverage does not have an influence on the value of the corporate wealth. Is this true when taxes exist?

“Financial leverage reduces the WACC but at the same time gives rise to financial risk borne by the shareholders”. Discuss.