Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)The most important insight regarding capital structure goes back to Modigliani and Miller: With perfect capital markets,a firm's security choice alters the risk of the firm's equity,but it does not change its value or the amount it can raise from outside investors.
• B)When agency costs are significant,short-term debt may be the most attractive form of external financing.
• C)Too much debt can motivate managers and equity holders to take excessive risks or over-invest in a firm.
• D)Of all the different possible imperfections that drive capital structure,the most clear-cut,and possibly the most significant,is taxes.

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Definitions:

Interest in Helping

A predisposition or willingness to assist others or contribute to the welfare of individuals or communities.

Preschool Transition Activities

Activities designed to support young children as they move from a home setting into a preschool environment, aiding in adjustment and readiness.

Preschool Teachers

Educators who instruct children between the ages of about three and five, prior to kindergarten, focusing on early development and learning.

Transition Needs

The requirements or support necessary for individuals to effectively move from one stage or condition to another.