Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A) Investors can alter the leverage choice of a firm to suit their personal tastes either by borrowing and reducing leverage or by holding bonds and adding more leverage.
• B) As per MM proposition II, the cost of capital of levered equity is equal to the cost of capital of unlevered equity plus a premium that is proportional to the debt-equity ratio.
• C) The MM propositions imply that the true role of a firm's financial policy is to deal with financial market imperfections such as taxes and transaction costs.
• D) In practice, we will find that capital structure can have an effect on a firm's value.

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Definitions:

Fraud

A deliberate deception made for personal gain or to damage another individual.

Institutional Animal Care

The oversight and management practices aimed at ensuring the humane and ethical treatment of animals used in research, testing, and education.

Animal Research Procedures

The methods and protocols followed in conducting research involving animals, often focusing on ensuring ethical treatment and minimizing harm.

Visual Stimuli

Any object or element within the environment that can be seen and is used in psychological experiments to elicit a response from the participant.