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johnpaech johnpaech
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6 years ago
Which of the following statements is FALSE?
A) While debt itself may be cheap, it increases the risk and therefore the cost of capital of the firm's equity.
B) Although debt does not have a lower cost of capital than equity, we can consider this cost in isolation.
C) We can use Modigliani and Miller's first proposition to derive an explicit relationship between leverage and the equity cost of capital.
D) The total market value of the firm's securities is equal to the market value of its assets, whether the firm is unlevered or levered.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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pbrown223pbrown223
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#1
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6 years ago
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johnpaech Author
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6 years ago
Thanks
IvanaVR
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Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
Kstan109
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2 hours ago
Good timing, thanks!
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