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Which of the Following Statements Is Correct

Question 245

Multiple Choice

Which of the following statements is correct?


A) Decisions regarding a firm's debt and equity can be called capital budgeting decisions.
B) The asset beta is a measure of the unsystematic risk of a firm's assets.
C) In a purely capital restructuring, the composition of the assets of the firm will change.
D) The value of the overall firm will not change as a result of a capital restructuring unless the NPV of the restructuring is negative.
E) The use of personal leverage by an investor to alter the degree of financial leverage of a firm is called homemade leverage.

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