Which of the following statements is NOT true?

a. A basic concept of Modigliani & Millers so-called M&M Proposition is that if taxes and bankruptcy costs are ignored, the debt/equity ratio in a firm shouldnt matter (i.e. the overall pizza is the same size whether cut into four or eight pieces).

b. According to the Economic Value Added (EVA) model, a firm can only generate value if it earns a return on the use of funds that is higher than the cost of those funds.

c. One reason a company might carry a heavy debt loads is that higher leverage magnifies the gain (or loss) percentage and therefore increases the return on investment (ROI) percentage.

d. The Beardstown Ladies became famous for their savvy investing by consistently beating the S&P500; as a result, they are, to this very day, one of the most respected investment clubs in the U.S.

e. Since the WACC represents the minimum required return, it is the rate used in NPV calculations in capital budgeting to evaluate investment alternatives.