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please help me Question 5 4 pts In preparation for the exam... Which of the following statements is FALSE? In the absence of taxes in
please help me
Question 5 4 pts In preparation for the exam... Which of the following statements is FALSE? In the absence of taxes in perfect capital markets, the total cash flow paid out to all of a firm's security holders is equal to the total cash flow generated by the firm's assets. s long as the firm's choice of securities does not change the cash flows generated by ts assets, the capital structure decision will not change the cost of equity With perfect capital markets, leverage merely changes the allocation of cash flows between debt and equity, without altering the total cash flows of the firm. In a perfect capital market, the total value of a firm is equal to the market value of the total cash flows generated by its assets and is not affected by its choice of capital structureStep by Step Solution
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