Which of the Following Statements Is CORRECT

question 23

Multiple Choice

Which of the following statements is CORRECT?

• A) Since debt capital can cause a company to go bankrupt but equity capital cannot,debt is riskier than equity,and thus the after-tax cost of debt is always greater than the cost of equity.
• B) The tax-adjusted cost of debt is always greater than the interest rate on debt,provided the company does in fact pay taxes.
• C) If a company assigns the same cost of capital to all of its projects regardless of each project's risk,then the company is likely to reject some safe projects that it actually should accept and to accept some risky projects that it should reject.
• D) Because no flotation costs are required to obtain capital as retained earnings,the cost of retained earnings is generally lower than the after-tax cost of debt.
• E) Higher flotation costs tend to reduce the cost of equity capital.

Appreciate the significance of law in regulating social order and ensuring predictability in commercial relationships.

Distinguish between case law and statutory law.

Recognize the importance of legal remedies in enforcing rights and maintaining social justice.

Understand the concept and practices of masturbation and sexual self-stimulation across genders.

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Definitions:

Goal Shielding

The cognitive process of protecting one's focus and efforts towards a specific goal by minimizing distractions or competing goals.

Committed

The state of being dedicated or bound to a cause, activity, or other person.

Self-Regulation

The ability to manage one's own thoughts, emotions, and behaviors in accordance with personal goals.

Self-Control

The capacity to control one's feelings, thoughts, and actions when faced with desires and sudden urges.