Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A) As long as a 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 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) An investor who would like more leverage than the firm has chosen can lend and add leverage to his or her own portfolio.

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Definitions:

Distal Convoluted Tubule

A portion of the nephron in the kidney involved in the selective reabsorption and secretion, playing a key role in regulating the body's salt and water balance.

ACE Inhibitor

A medication used to treat high blood pressure and heart failure by inhibiting an enzyme involved in the constriction of blood vessels.

High Blood Pressure

A condition characterized by the force of the blood against the walls of the arteries being consistently too high, often leading to health issues like heart disease.

Salt Concentration Gradient

A variation in the concentration of salt across a distance, affecting the movement of substances in biological systems.