Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)While debt itself may be cheap,it increases the risk and therefore the cost of capital of the firm's equity.
• B)Although debt does not have a lower cost of capital than equity,we can consider this cost in isolation.
• C)We can use Modigliani and Miller's first proposition to derive an explicit relationship between leverage and the equity cost of capital.
• D)The total market value of the firm's securities is equal to the market value of its assets,whether the firm is unlevered or levered.

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Definitions:

Personal Support

Assisting others in the workplace through the use of interpersonal skills.

Organizational Citizenship Behavior

Voluntary actions performed by employees that contribute to the overall effectiveness and environment of an organization, beyond their specified job roles.

Personal Support Dimension

An aspect of interpersonal relationships involving the provision of emotional, physical, or informational support to others.

Coworker Assistance

The act of offering help or support to colleagues in a work environment.