Top Posters
Since Sunday
k
1
1
1
1
1
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Memphic Memphic
wrote...
Go to Answer
Posts: 728
Rep: 0 0
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:
Read 59 times
1 Reply
Replies
Answer verified by a subject expert
EgorGruzdevEgorGruzdev
wrote...
#1
Posts: 422
Rep: 16 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Memphic Author
wrote...

6 years ago
Just got PERFECT on my quiz
sakoon
wrote...

Yesterday
Smart ... Thanks!
7.prime7105
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  852 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 4432
  
 161
  
 1661
Your Opinion
What's your favorite coffee beverage?
Votes: 274
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?