Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)The money taken in by the firm as a result of the share issue exactly offsets the dilution of the shares.
• B)Most analysts prefer to use performance measures and valuation multiples that are based on the firm's earnings before interest has been deducted.
• C)Because the firm's earnings per share and price-earnings ratio are affected by leverage,we can always reliably compare these measures across firms with different capital structures.
• D)In general,as long as the firm sells the new shares of equity at a fair price,there will be no gain or loss to shareholders associated with the equity issue itself.

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Definitions:

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development where children from ages 2 to 7 learn through pretend play but struggle with logic and taking the point of view of other people.

Innately More Nurturing

The belief that certain individuals or genders possess a natural tendency to be more caring and supportive, often attributed to women.

Emotional Connection

A bond between individuals based on feelings of empathy, love, and understanding that goes beyond surface-level interactions.

Child Development Myth

Misconceptions or false beliefs about the processes through which children grow and develop psychologically, physically, and socially.