Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?

• A) Issuance costs increase the WACC.
• B) Issuance costs should be treated as cash outflows in NPV analysis.
• C) External equity is less expensive than retained earnings.
• D) A project that can be financed with internal funds will be less costly than the same project if it were financed with external funds.

---

Definitions:

Systems Software

The collection of software that manages the resources of a computer and provides a platform for running application software, including operating systems and utilities.

Application Software

Application software consists of computer programs and tools designed to help users perform specific tasks or activities beyond the basic operation of the computer itself.

Hardware

The physical components of a computer system, such as the CPU, RAM, hard drives, motherboard, and peripheral devices.

Communication Technologies

The tools and systems used for the transmission, reception, and processing of information between parties.