TRUE OR FALSE: Although a firm may have access to capital under all types of economic conditions, the concept of financial flexibility implies that the firm can obtain capital on acceptable, competitive terms.

TRUE OR FALSE: The issuance of equity for a firm with various financing alternatives signals that the firm has unfavorable prospects which it wants to share with new shareholders according to the signaling theory of capital structure.

TRUE OR FALSE: financial risk and business risk are related in that, as business risk increases so do financial risk.