Which of the following statements is FALSE?A. Interest expense reduces taxable income and net income but not EBIT.B. When a company repurchases its shares using proceeds from new issues of debt, its future expected earnings per share increases.C. 'Homemade leverage' is the use of personal borrowing to adjust the overall amount of financial leverage to which the individual investor is exposed.D. Under M&M assumptions which ignore special benefits and costs of debt, leverage has a substantial impact on total firm value and on WACC

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