Which of the following statements is FALSE?

A.Making positiveNPV investments will create value for the firm's investors, whereas saving the cash or paying it out will not.

B. After adjusting for investor taxes, there remains a substantial tax advantage for the firm to retain excess cash.

C. In perfect capital markets, if a firm invests excess cash flows in financial securities, the firm's choice of payout versus retention is irrelevant and does not affect the initial share price.

D.In perfect capital markets, buying and selling securities is a zeroNPV transaction, so it should not affect firm value.