• "Miller and Modigliani Proposition 1, with taxes" says that levered firm's value is higher than all-equity firm's value. [ Select ] ["TRUE", "FALSE"]
• The risk to the stockholders is lower when the ratio of debt to equity in a firm's capital structure is lower. [ Select ] ["TRUE", "FALSE"]
• Stockholders can replicate the effect of a firm that has debt by buying shares of an all-equity firm and simultaneously lending money. [ Select ] ["TRUE", "FALSE"]
• When the firm pays taxes, its weighted average cost of capital is not affected by the amount of debt that it has.