Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Since the publication of their original paper,Modigliani and Miller's ideas have greatly influenced finance research and practice.
• B)Proposition I was one of the first arguments to show that the Law of One Price could have strong implications for security prices and firm values in a competitive market;it marks the beginning of the modern theory of corporate finance.
• C)The conservation of value principle applies only to questions of debt versus equity or capital structure.
• D)The conservation of value principle for financial markets states that with perfect capital markets,financial transactions neither add nor destroy value,but instead represent a repackaging of risk (and therefore return).

---

Definitions:

Energy Storage

The capture of energy produced at one time for use at a later time, using devices or systems such as batteries, capacitors, or mechanical storage systems.

Charge Rate

The rate at which an electric battery or accumulator is charged or discharged, measured in amperes.

μ F

A unit of capacitance, microfarads, representing one-millionth of a farad, used to quantify the storage potential of capacitors.

k Ω

A unit of electrical resistance equal to one thousand ohms, often used in electronics and electrical engineering.