Which of the following statements is false? a. mmproposition1, if there are no taxes, states the value of the firm does not depend whatsoever on itscapital structure. b. mm proposition 2, if there are no taxes, explains how the cost of equity decreases as the firm increasesits use of debt financing. c. because interest expense is tax deductible, leverage increases the firm's value by the amount of thepresent value of the interest tax shield. d. because interest expense is tax deductible, a firm's wacc decreases as firms rely more heavily on debt financing.

Financial performance is measured in many ways. requirements 1. explain the difference between lag and lead indicators. 2. the following is a list of financial measures. indicate whether each is a lag or lead indicator: a. income statement shows net income of $100,000 b. listing of next week's orders of $50,000 c. trend showing that average hits on the redesigned website are increasing at 5% per week d. price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. contract signed last month with large retail store that guarantees a minimum shelf space for grandpa's overloaded chocolate cookies for the next year