Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Even after adjusting for personal taxes,the value of an unlevered firm exceeds the value of a levered firm,and there is a tax advantage to using debt financing.
• B)In Modigliani and Miller's setting of perfect capital markets,firms could use any combination of debt and equity to finance their investments without changing the value of the firm.
• C)When firms raise new capital from investors,they do so primarily by issuing debt.
• D)In most years aggregate equity issues are negative,meaning that firms are reducing the amount of equity outstanding by buying shares.

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Definitions:

Empathy

The ability to understand and share the feelings of another person.

Organizational Values

The fundamental beliefs or principles that guide an organization's actions, decisions, and interactions with stakeholders.

Employee Values

are the core beliefs and principles that employees hold important in their work life and influence their behavior and attitudes at work.

Company's Dominant Values

The core beliefs and principles that are most prevalent and prioritized within an organization, shaping its culture and behavior.