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wHICH statement is false? a.Growth rate of the firm is higher, it is more optimal to have a higher level of debt relative to equity

wHICH statement is false?

a.Growth rate of the firm is higher, it is more optimal to have a higher level of debt relative to equity in the firm capital structure.

B. Growth will affect the optimal leverage ratio even if the firm has positive earnings.

C. When examining tax, the optimal debt level is proportional to its current earnings.

D. The more unsure we are of EBIT the more chance that interest will exceed EBIT, if the interest expense is high

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