Which of the Following Statements Is False Regarding MM's Proposition

question 110

Multiple Choice

Which of the following statements is false regarding MM's proposition I:

• A)firm value is unaffected by its capital structure.
• B)it is also called the debt irrelevance proposition.
• C)shareholders should care about the firm's debt policy.
• D)after restructuring, the firm's value should be the same as it was prior to restructuring.

---

Definitions:

Atmospheric Warming

The increase in Earth's average surface temperature due to rising levels of greenhouse gases in the atmosphere.

Climate Change

Long-term changes in temperature, precipitation, and weather patterns on Earth, largely attributed to human activities such as fossil fuel combustion.

Ocean Currents

Large-scale movements of seawater that circulate throughout the earth's oceans, driven by wind, salinity, and temperature differences.

Landscape Features

Natural and man-made formations or landmarks that characterize a specific area of land, including mountains, rivers, and forests.