Question 5 One of the results of the empirical work concerning the diversification discount" conducted by Berger and Ofek (and discussed in lectures) is that the diversification discount exists because shareholders "over invest in the diversified company pushing the share price up and reducing returns. True/False Question 6 ABC is a leveraged company with market values of its equity and debt as $20 million and $10 million, respectively. It has decided to undertake a capital restructuring which will result in new market values of both equity and debt to be $15 million each. Assuming that all other company characteristics will remain unchanged, ABC's new equity beta will be lower than the old equity beta (before restructuring). True/False