Which of the following statements is false?
A) Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and reducing leverage or by holding bonds and adding more leverage.
B) On the market value balance sheet the total value of all securities issued by the firm must equal the total value of the firm's assets.
C) The market value balance sheet captures the idea that value is created by a firm's choice of assets and investments.
D) One application of MM Proposition I is the useful device known as the market value balance sheet of the firm.

Question

Quizplus · Accepted Answer

A) Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and increasing leverage or by holding bonds and reducing leverage.

Which of the Following Statements Is False