Question: indicate whether the statement is true, false or uncertain, and justify your answer. Unjustified responses will receive a grade of zero. (f):- A levered firm

indicate whether the statement is true, false or uncertain, and justify your answer. Unjustified responses will receive a grade of zero. (f):- A levered firm gets some bad news about future business cash flows and the value of the firm falls. The firm's debt is riskless. This bad news does not affect the cost of capital associated with the firm's business cash flows. Statement. The risk faced by the shareholders has increased. (HINT: think about the firm's balance sheet and the betas associated with each of its components.)

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