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Which of the following statements is FALSE? A) The yield curve shows the annualized interest rate as a function of bond maturity. B) According to

Which of the following statements is FALSE? A) The yield curve shows the annualized interest rate as a function of bond maturity. B) According to the Modigliani and Miller Proposition I, the capital structure is irrelevant to the value of the firm. C) The higher the leverage, the lower the expected return for equity holders. D) If bankruptcy is costly, these costs might offset the tax advantages of debt financing.

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