Which of the Following Statements Is FALSE

question 63

Multiple Choice

Which of the following statements is FALSE?

• A)With no debt,the WACC is equal to the unlevered equity cost of capital.
• B)With perfect capital markets,a firm's WACC is dependent of its capital structure and is equal to its equity cost of capital only if the firm is unlevered.
• C)As the firm borrows at the low cost of capital for debt,its equity cost of capital rises,but the net effect is that the firm's WACC is unchanged.
• D)Although debt has a lower cost of capital than equity,leverage does not lower a firm's WACC.

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Definitions:

Protein-Coding Segments

Portions of DNA or RNA that contain the information necessary to build proteins, crucial for all biological processes.

Pseudogenes

Segments of DNA that resemble functional genes but are nonfunctional due to mutations.

Genetic Variation

The diversity in gene frequencies within a population, which is a primary source of evolution and adaptation.

Germline Cells

Cells that are involved in the reproduction process and give rise to gametes, carrying genetic information to the offspring.