Which of the Following Statements Is FALSE

question 87

Multiple Choice

Which of the following statements is FALSE?

• A)The agency costs of debt can arise only if there is no chance the firm will default and impose losses on its debt holders.
• B)Agency costs represent another cost of increasing the firm's leverage that will affect the firm's optimal capital structure choice.
• C)An under-investment problem occurs when shareholders choose to not invest in a positive-NPV project.
• D)When a firm faces financial distress,it may choose not to finance new,positive-NPV projects.

Understand the purpose of using control and experimental groups in research studies.

Distinguish between experimental and non-experimental research methods.

Recognize the importance of measuring variables appropriately to accurately analyze and interpret research findings.

Understand the basics and objectives of observational research.

---

Definitions:

Disorientation

The condition of being confused about time, place, or personal identity.

Slow Speech

A speech pattern that is notably slower than average, often observed in various neurological, developmental, or psychological conditions.

Confusional Arousal

A sleep disorder characterized by waking up in a state of confusion and disorientation, often with no memory of the event.

Relatively Brief

Describes a time span or duration that is short compared to others but may vary depending on context.