Which of the Following Is NOT a Sensible Reason for a Firm

question 18

Multiple Choice

Which of the following is NOT a sensible reason for a firm to rely on internal funds?

• A)Equity issues are generally expensive.
• B)A new bond issue may drive the firm's debt ratio too high.
• C)Financial markets interpret the issuance of equity unfavorably.
• D)All of these are sensible reasons to rely on internal funds.

---

Definitions:

Fatty White Tissue

A type of body fat, also known as white adipose tissue, which stores energy and secretes hormones.

Deliberate Practice

The act of repetitively practicing a skill with the explicit goal of improving performance, incorporating immediate feedback and focusing on technique.

Cognitive Skills

Refer to the mental capabilities that include the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

Transferable

Qualities, skills, or assets that can be moved, conveyed, or used in different contexts or by different entities.