Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)Absent market imperfections,leases represent another form of zero-NPV financing available to a firm,and the Modigliani-Miller propositions apply: Leases neither increase nor decrease firm value,but serve only to divide the firm's cash flows and risks in different ways.
• B)In a perfect market,the cost of leasing is equivalent to the cost of purchasing and reselling the asset.
• C)Each lease agreement can be tailored to fit the precise nature of the asset and the needs of the parties at hand.
• D)Features of leases will be priced as part of the lease payment.Terms that give valuable options to the lessee lower the amount of the lease payments,whereas terms that restrict these options will raise them.

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Definitions:

Paying Subscribers

Individuals or entities who pay a fee to receive services, content, or products on a recurring basis.

Verb Agree

The grammatical rule that subjects and verbs must be in agreement in number (singular or plural) and person.

Subject

The main noun or pronoun that performs the verb in a sentence, acting as the focus of the statement.

Ski Packages

Pre-arranged travel plans specifically designed for skiing holidays that often include accommodations, lift tickets, and sometimes transport or ski equipment rentals.