8.) Explain why each of the following statements is false:

a. Maximizing return on invested capital (ROIC) leads directly to increasing market value added (MVA).

b. A firm should maximize its cost of capital since it measures the return to its suppliers of capital.

c. Because financial leverage increases the return to stockholders, it also leads to increasing a firms MVA.

d. Capital structure is the main driver behind a firms ability to increase MVA.