The Law of Conservation of Value Implies That

Multiple Choice

The law of conservation of value implies that
I.the mix of common stock and preferred stock does not affect the value of the firm;
II.the mix of long-term and short-term debt does not affect the value of the firm;
III.the mix of secured and unsecured debt does not affect the value of the firm

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