Which of the following statements is not true? Multiple Choice Equity investors in levered firms require a higher expected return to compensate for its increased risk. Modigliani and Miller argued that with taxes, the total value of a firm should not depend on its capital structure Modigliani and Miller show that with perfect capital markets, leverage does not impact firm value. Leverage increases the risk of equity even when there is no risk that the firm will default It is inappropriate to discount the cash flows of a levered firm at the same discount rate that we use for an unlevered firm