Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A)If there is uncertainty regarding EBIT,then with a higher interest expense there is a greater risk that interest will exceed EBIT.
• B)Even for a firm with positive earnings,growth will affect the optimal leverage ratio.
• C)From a tax perspective,the firm's optimal level of debt is proportional to its current earnings.
• D)The optimal proportion of debt in the firm's capital structure will be higher,the higher the firm's growth rate.

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Definitions:

Mental Status

A composite of an individual's psychological and emotional functioning, often assessed through observation of appearance, behavior, cognitive function, and mood.

Dysarthric Speech

Impaired articulation of speech due to disturbances in muscular control, often resulting from neurological disorders.

Mental Status Examination

A structured assessment of a patient's level of cognitive function, appearance, mood, and perceptions, crucial in diagnosing mental health conditions.

Suicidal Thoughts

Thoughts about taking one's own life, often associated with depression and other mental health disorders.