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:

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often associated with REM sleep stages.

Neural Signals

Electrical impulses that transmit information throughout the nervous system.

Nicotine

a toxic yellowish liquid alkaloid found in tobacco and used in medicine as an insecticide, and also known to be highly addictive.

Dopamine

A neurotransmitter involved in motivation, pleasure, and reward, influencing movement, learning, and emotional responses.