Which of the Following Statements Is FALSE

question 61

Multiple Choice

Which of the following statements is FALSE?

• A)The relative proportions of debt,equity,and other securities that a firm has outstanding constitute its capital structure.
• B)The most common choices for financing a new project are financing through equity alone and financing through a combination of debt and equity.
• C)The NPV created by a project represents the value to the new investors of the firm.
• D)When corporations raise funds from outside investors,they must choose which type of security to issue.

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Definitions:

Pay-For-Success

A funding model where payment is contingent on achieving agreed-upon results, often used in social service and public sector projects to align funding with outcomes.

Social Impact Bond

A financial instrument that raises private investment to fund public or social services, with returns to investors contingent on achieving predetermined social outcomes.

Direct Funding

Direct funding refers to the allocation of financial resources directly to a specific project, program, or organization without intermediaries.

Organization

An entity, such as a company, government body or nonprofit, composed of individuals working together to achieve common goals or perform specific functions.