Which of the following statements is false? O Financial risk refers to the extra risk borne by stockholders as a result of a firm's use of debt as compared with their risk if the firm had used no debt. O A firm's business risk is largely determined by the financial characteristics of its industry, especially by the amount of debt the average firm in the industry uses. a O In a world with no taxes, Modigliani and Miller (MM) show that a firm's capital structure does not affect its value. If a firm borrows money, it is using financial leverage. O When taxes are considered, MM show a positive relationship between debt and value, i.e., the firm's value rises as it uses more and more debt, other things held constant