Question $9(1$ point$)$

Which of the following statements regarding capital structure is false?

As debt is added to the capital structure of a for$-$profit corporation, the risk to equity investors increases

As debt is added to the capital structure of a for$-$profit corporation, return on equity decreases

As debt is added to the capital structure of a for$-$profit corporation, the operating income $($EBIT$)$ available for distribution to investors increases

As debt is added to the capital structure of a for$-$profit corporation, the cost of debt capital increases