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.

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Definitions:

Disseminate Information

To disseminate information means to spread knowledge, news, or other data widely, ensuring it reaches a broad audience through various means, including digital and print media.

GAP Model

A framework for identifying and addressing gaps between customer expectations and experiences in service delivery.

Customers Expect

The anticipations or beliefs about the performance or services a customer expects from a product, service, or brand.

Company Thinks

Conceptual understanding or opinion held by a company regarding market trends, customer preferences, or strategies.