Which of the Statements Below Is FALSE

Multiple Choice

Which of the statements below is FALSE?

A) When a company performs well,it can handle more debt and benefit the owners.
B) Borrowing from debt lenders at one rate and investing the money in the business and making a higher rate is bad for the owners.
C) Assume that the more debt the company has sold,the better off the shareholders are.This is the case where the earnings reflect a return greater than the cost of debt.
D) Financial leverage is the degree to which a firm or individual utilizes borrowed money to make money.