Which of the Following Statements Is Not True

question 25

Multiple Choice

Which of the following statements is not true?

• A) Dividend payments but not capital gains are costs to the firm.
• B) Stockholder's expected return equals the firm's cost of equity.
• C) Payments to current stockholders are the implicit cost of the infusion of new equity capital.
• D) The security market line provides information as to the cost of equity for a firm.
• E) The return that the investor in a security receives is the cost of that security to the company that issued the security.

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Definitions:

Ladder Diagram

An industry standard for representing relay logic control systems. The diagram resembles a ladder because the vertical supports of the ladder appear as power feed and return buses and the horizontal rungs of the ladder appear as series and/or parallel circuits connected across the power lines.

Ladder Rung

A horizontal row in a ladder logic diagram, representing a condition leading to an outcome in programmable logic controllers (PLCs).