The Law of Conservation of Value Implies That

Multiple Choice

The law of conservation of value implies that
I.the mix of senior and subordinated debt does not affect the value of the firm;
II.the mix of convertible and nonconvertible debt does not affect the value of the firm;
III.the mix of common stock and preferred stock does not affect the value of the firm

A) I only
B) II only
C) III only
D) I, II, and III