Which of the Following Statements Is FALSE

question 95

Multiple Choice

Which of the following statements is FALSE?

• A)Even though firms have not issued new equity,the market value of equity has risen over time as firms have grown.
• B)While firms seem to prefer debt when raising external funds,not all investment is externally funded.
• C)To receive the full tax benefits of leverage a firm needs to use 100% debt financing.
• D)If bankruptcy is costly,these costs might offset the tax advantages of debt financing.

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Definitions:

Trainee-Initiated

Trainee-initiated refers to activities or learning processes that are started and directed by the learners themselves, fostering autonomy and self-directed learning.

Collaborative

Involving two or more parties working together towards a common goal.

Multilevel Systems Model

A framework that analyzes interactions across different layers or levels within an organization or system, considering factors from individual to societal influence.

Organizational Learning

The ability of an organization to gain insight and understanding from experience and apply it to improve its practices, strategies, and policies.