Which of the Following Statements Is FALSE

question 66

Multiple Choice

Which of the following statements is FALSE?

• A)An investor who would like more leverage than the firm has chosen can lend and add leverage to his or her own portfolio.
• B)If securities are fairly priced, then buying or selling securities has a net present value (NPV)of zero and, therefore, should not change the value of a firm.
• C)The future repayments that the firm must make on its debt are equal in value to the amount of the loan it receives up front.
• D)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.

---

Definitions:

Manufacturing Facilities

Locations where products are produced or assembled.

Capacity Allocation

The process of assigning available resources or space to various operations, tasks, or productions within an organization.

Facility Role

The defined responsibilities and functions of a facility within an organization or network, such as manufacturing, storage, or distribution.

Positive Externalities

Benefits that affect uninvolved third parties resulting from an economic activity or transaction.