Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) With all-equity companies,the rate of return to shareholders is always equal to the rate of return on assets.
B) With debt,the rate of return to shareholders is always equal to the rate of return on assets providing the rate of return on assets is equal to the interest rate.
C) If the rate of return on assets is greater than the interest on debt,then leverage results in lower rates of return on equity.
D) If the rate of return on assets is less than the interest rate on debt,then leverage results in lower rates of return on equity.