Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Even after adjusting for personal taxes,the value of an unlevered firm exceeds the value of a levered firm,and there is a tax advantage to using debt financing.
• B)In Modigliani and Miller's setting of perfect capital markets,firms could use any combination of debt and equity to finance their investments without changing the value of the firm.
• C)When firms raise new capital from investors,they do so primarily by issuing debt.
• D)In most years aggregate equity issues are negative,meaning that firms are reducing the amount of equity outstanding by buying shares.

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Definitions:

Stressful

Pertaining to or characterized by stress, which is a state of mental or emotional strain or tension.

Second-stage Labor

The phase of childbirth where the woman begins to push, leading to the delivery of the baby.

Apgar Scale

A widely used method to assess the health of newborns at one and five minutes after birth. The Apgar Scale evaluates infants’ heart rate, respiratory effort, muscle tone, body color, and reflex irritability.

Newborn's Health Status

A general assessment of a newborn baby's overall health and wellness, typically evaluated shortly after birth.