Which of the Following Statements Is FALSE

question 66

Multiple Choice

Which of the following statements is FALSE?

• A)Leverage decreases the risk of the equity of a firm.
• B)Because the cash flows of the debt and equity sum to the cash flows of the project,by the Law of One Price the combined values of debt and equity must be equal to the cash flows of the project.
• C)Franco Modigliani and Merton Miller argued that with perfect capital markets,the total value of a firm should not depend on its capital structure.
• D)It is inappropriate to discount the cash flows of levered equity at the same discount rate that we use for unlevered equity.

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Definitions:

Human Genome Project

an international scientific research project with the goal of determining the sequence of nucleotide base pairs that make up human DNA, and of identifying and mapping all of the genes of the human genome.

Repeated Sequences

DNA segments that are present multiple times within a genome, including both tandem repeats and interspersed repeats.

Nucleotides

Organic molecules that serve as the monomers, or subunits, of nucleic acids like DNA and RNA, consisting of a nitrogenous base, a sugar, and one or more phosphate groups.

Microinjection

A technique used in molecular biology to deliver substances directly into cells by penetrating the cell membrane with a fine needle.