Which of the Following Statements Is FALSE

question 77

Multiple Choice

Which of the following statements is FALSE?

• A)Since the publication of their original paper,Modigliani and Miller's ideas have greatly influenced finance research and practice.
• B)Proposition I was one of the first arguments to show that the Law of One Price could have strong implications for security prices and firm values in a competitive market;it marks the beginning of the modern theory of corporate finance.
• C)The conservation of value principle applies only to questions of debt versus equity
• Or capital structure.
• D)The conservation of value principle for financial markets states that with perfect capital markets,financial transactions neither add nor destroy value,but instead represent a repackaging of risk (and therefore return).

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Definitions:

Technological Advances

Innovations and improvements in technology that enable new products, improved processes, and greater efficiency across various industries and sectors.

Savings Rate

The percentage of money that individuals or entities save from their disposable income, often considered an indicator of economic health.

Consumer Expenditures

The total amount spent by consumers on goods and services within a given period.

U.S. Consumers

Individuals or households in the United States that purchase goods and services for personal use.