Consider the Following Equation for the Question(s)below

Multiple Choice

Consider the following equation for the question(s) below:
E + D = U = A
-Which of the following statements is FALSE?

A) The levered equity return equals the unlevered return, plus an extra 'kick' due to leverage.
B) The cost of capital of levered equity is equal to the cost of capital of unlevered equity plus a premium that is proportional to the market value debt-equity ratio.
C) By holding a portfolio of the firm's equity and its debt, we can replicate the cash flows from holding its levered equity.
D) If a firm is unlevered, all of the free cash flows generated by its assets are available to be paid out to its equity holders.