Which of the following statements is FALSE? When securities are fairly priced, the original shareholders of a firm capture the full benefit of the interest tax shield from an increase in leverage. When investors use leverage in their own portfolios to adjust the leverage choice made by a firm, we say that they are using homemade leverage. The Law of One Price implies that leverage will affect the total value of a firm under perfect capital market conditions. By reducing a firm's corporate tax liability, debt allows the firm to pay more of its cash flows to investors. While firms seem to prefer debt when raising external funds, not all investment is externally funded