Which of the following is affected by changes in capital structure under MM Proposition i The stock price The summed market values of debt and equity None of the other answers are correct. The weighted average cost of capital A QUESTION 4 Which of the following is TRUE about cash flows? o You should always make investment decisions and financing choices based on the average tax rate Operating Cash Flow is the money made from investments in the business Noncash expenses like depreciation affect cash flow When Free Cash Flow is negative, this means operating investments exceeded their operating cash now QUESTION 7 Which of the following statements is FALSE? Brokers buy and sell securities from their own inventory, white dealers bring buyers and sellers together Unlike equity holders, debt holders are not owners of the company A stock's price is the present value of the expected dividends and capital gains The Gordon Growth Model assumes constant dividend growth and implies that stock prices grow at the same rate