Which of the Following Statements Regarding Non-Financial Liabilites Is True

question 5

Multiple Choice

Which of the following statements regarding non-financial liabilites is true?

• A)If there is a strong linkage between a firm's projects and its claims structure, then the firm's cost of capital is unaffected by the proportions of non-financial debt, financial debt, and
• Equity financing that a firm chooses to use.
• B)If arbitrageurs can easily undue suboptimal choices, then the firm's cost of capital is unaffected by the proportions of non-financial debt, financial debt, and equity financing
• That a firm chooses to use.
• C)The CAPM is an effective tool to use in determining the cost of non-financial liabilities.
• D)All of the above are true statements.

---

Definitions:

Stressors

Events or conditions in one's environment that cause stress.

Social Support

The assistance and comfort received from friends, family, and others, which can be emotional, informational, or practical.

Immune System

The body's defense system against infectious organisms and other invaders.

Problem-Focused Coping

A strategy for dealing with stress by directly addressing the problem causing the stress, rather than the emotions it generates.