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.

---

Definitions:

Organizational Citizenship Behaviours

voluntary actions by employees that contribute to the organization by improving its overall environment and functioning, beyond their required duties.

Job Requirements

Specifications and qualifications necessary for performing a specific job.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their motivation, performance, and overall well-being.

Job Performance

The effectiveness with which job duties are executed and the extent to which an employee accomplishes set tasks and goals.