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Memphic Memphic
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6 years ago
Which of the following statements is FALSE?
A) The most important insight regarding capital structure goes back to Modigliani and Miller: With perfect capital markets, a firm's security choice alters the risk of the firm's equity, but it does not change its value or the amount it can raise from outside investors.
B) When agency costs are significant, short-term debt may be the most attractive form of external financing.
C) Too much debt can motivate managers and equity holders to take excessive risks or over-invest in a firm.
D) Of all the different possible imperfections that drive capital structure, the most clear-cut, and possibly the most significant, is taxes.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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#1
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6 years ago
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Memphic Author
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6 years ago
Smart ... Thanks!
Tabitha.davis
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Yesterday
Correct Slight Smile TY
DAGINC
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2 hours ago
Thank you, thank you, thank you!
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