20. There are two firms with different capital structure: one is levered and the other is unlevered. According to the MM irrelevant proposition, (A) The value of two firms is equal. (B) The cost of capital of levered equity increases with the firm’s debt-equity ratio increases. (C) The WACC is still constant. (D) All of the above.

23. Which of the following statements is FALSE? (A) Put-call parity gives the price of a European call option in terms of the price of a European put, the underlying stock, and a zero-coupon bond. (B) For a given strike price, the value of a call option is higher if the current price of the stock is higher, as there is a greater likelihood the option will end up in-the-money. (C) The value of an otherwise identical call option is higher if the strike price the holder must pay to buy the stock is higher. (D) Because a put is the right to sell the stock, puts with a lower strike price are less valuable. 共 3 頁，第 2 頁

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