[Solved] Which of the Following Statements Is False

Question 57
Multiple Choice

Which of the following statements is FALSE?

A)Financial transactions are not sources of value,but merely serve to adjust the timing and risk of the cash flows to best suit the needs of the firm or its investors.
B)The NPV of trading a security in a normal market is zero.
C)We cannot separate a firm's investment decision from the decision of how to finance the investment.
D)In normal markets,trading securities neither creates nor destroys value.

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