CHAPTER $3$: Leverage Analysis

$11.$ Which of the following statements are incorrect:

a$)$ In order to maximize value, a company should increase its tolerance of risk

b$)$ Value is inversely related to the expectations of investors.

c$)$ Increasing the proportion of debt in a company will reduce expected returns to shareholders.

A$.[]$ a and b

B$.1$ band c

c$.[]$ a and c

D$.[]$ a$,$ b and c