Which of the Following Statements Is FALSE

question 20

Multiple Choice

Which of the following statements is FALSE?

• A)The levered equity return equals the unlevered return,plus an extra "kick" due to leverage.
• B)By holding a portfolio of the firm's equity and its debt,we can replicate the cash flows from holding its levered equity.
• C)The cost of capital of levered equity is equal to the cost of capital of unlevered equity plus a premium that is proportional to the market value debt-equity ratio.
• D)If a firm is unlevered,all of the free cash flows generated by its assets are available to be paid out to its equity holders.

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Definitions:

Sexual Orientation

An enduring pattern of romantic or sexual attraction to persons of the opposite sex or gender, the same sex or gender, or to both sexes or more than one gender.

Victim Blaming

The practice of holding the victim of a crime, accident, or any type of abusive maltreatment to be entirely or partially responsible for the wrongful conduct committed against them.

Rape Culture

A complex of beliefs that normalizes sexual violence against women and blames victims, perpetuated through media and popular culture.

Sexual Double Standards

A societal norm that allows or excuses certain behaviors in one gender but not the other, often related to sexual behavior and attitudes.