Under Perfect Capital Markets,which of the Following Statements Is Regarding

question 26

Multiple Choice

Under perfect capital markets,which of the following statements is regarding capital structure is most accurate?

• A)As long as the firm's choice of securities does not change the cash flows generated by its assets,the capital structure decision will not change the total value of the firm or the amount of capital it can raise.
• B)If securities are fairly priced,then buying or selling securities has a positive net present value (NPV)and will,therefore,change the value of a firm.
• C)The future repayments that the firm must make on its debt are larger than the amount of the loan it receives up front.
• D)An investor who would like more leverage than the firm has chosen can lend and add leverage to his or her own portfolio.
• E)The firm can increase debt levels to increase firm value.

---

Definitions:

Neutrophil Count

A measure of the number of neutrophils, which are a type of white blood cell, in the blood; important for determining the body's capacity to fight infections.

Acute Bacterial Infection

A rapid onset infection caused by bacteria, characterized by symptoms that develop quickly and are typically severe.

Urinary Catheter

A tube inserted into the bladder to provide urinary drainage when an individual is unable to urinate naturally.

Health Care-Acquired Infection

An infection that a patient acquires while receiving treatment for another condition within a healthcare setting, also known as a nosocomial infection.