Which of the following statements is FALSE?

The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receivenamely, the cash flows the investor will receive before all taxes have been paid.

By reducing a firm's corporate tax liability, debt allows the firm to pay more of its cash flows to investors.

Just like corporate taxes, personal taxes reduce the cash flows to investors and diminish firm value

The value of a firm is equal to the amount of money the firm can raise by issuing securities.