Which of the following statements is FALSE?

Select one:

a. It is inappropriate to discount the cash flows of levered equity at the same discount rate that we use for unlevered equity.

b. Leverage decreases the risk of the equity of a firm.

c. Franco Modigliani and Merton Miller argued that with perfect capital markets, the total value of a firm should not depend on its capital structure.

d. Because the cash flows of the debt and equity sum to the cash flows of the project, by the Law of One Price the combined values of debt and equity must be equal to the cash flows of the project.