Which of the Following Statements Is False

question 76

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:

Two-dimensional Array

A type of multi-dimensional array with two indexes, representing a grid-like structure for storing data.

Nums

Typically refers to an array or collection of numerical values in programming.

Element

Refers to a basic component or part of a larger system, such as an individual data item in an array.

Function Header

The first part of a function definition, including the function name, return type, and any parameters it accepts.