Assume Firm A's Acquisition of Firm B Results in a Reduction

True/False

Assume Firm A's acquisition of Firm B results in a reduction in the combined firms' debt-to-total capital ratio to .25. If the same ratio for the industry is .5, the combined firm may be able to increase its borrowing to the industry average, assuming no extenuating circumstances. However, this should not be viewed as a source of value to the acquiring firm.