Which of the following statements is FALSE? Leverage decreases the risk of the equity of a form Because the cash flows of the debt and equity sumn to the cash flows of the project, by the Law of Cor Price the combined values of debt and equity must be equal to the cash flows of the project Franco Modigliani and Merton Miller argued that with perfect capital markets the total value of a form should not depend on its capital structure It is inappropriate to discount the cash flow of levered equity at the same discount rate that we use for unlevered equity Which of the following statements is FALSE? In general , the gain to Investors from the tax deductibility of interest payments is referred to as the interest tax shield. A firm receives a tax benefit only if it is paying taxes in the first place. Because corporations pay taxes on their profits after interest payments are deducted, interest expenses reduce the amount of corporate tax firms must pay, To the extent that a firm has other tax shields, its taxable earnings will be increased and it will rely more heavily on the interest tax shield