Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)As long as the firm's choice of securities does not change the cash flows generated by its assets,the capital structure decision will not change the total value of the firm or the amount of capital it can raise.
• B)If securities are fairly priced,then buying or selling securities has an NPV of zero and,therefore,should not change the value of a firm.
• C)The future repayments that the firm must make on its debt are equal in value to the amount of the loan it receives up front.
• D)An investor who would like more leverage than the firm has chosen can lend and add leverage to his or her own portfolio.

---

Definitions:

Rogers

Refers to Carl Rogers, an influential American psychologist and one of the founders of the humanistic approach to psychology, emphasizing the importance of free will, self-efficacy, and self-actualization.

Self-destructive Behaviors

Actions that cause harm or damage to oneself.

Fully Functioning

Describes an individual who is in touch with their feelings and desires, living authentically and harmoniously within themselves and their environment, a concept associated with Carl Rogers.

Optimal Experiences

Moments characterized by a high level of satisfaction, engagement, and a sense of achievement, often related to the psychological concept of flow.