Which One of These Statements Is Correct

question 38

Multiple Choice

Which one of these statements is correct?

• A)There is no condition known to date whereby a corporation can increase firm value through the use of leverage.
• B)Corporations generally pay a lower cost on debt than do individuals due to their vast pool of liquid assets.
• C)If individuals pay a higher cost to borrow than corporations do,then corporations can increase firm value by borrowing.
• D)Margin accounts tend to be high interest rate sources of funds for individuals.
• E)Corporations can increase firm value by borrowing provided their interest rate on debt exceeds that paid by individuals.

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Definitions:

Mild Delirium

A lightly disturbed state of mind characterized by confusion, disordered speech, and hallucinations, typically of a temporary nature.

Creutzfeldt-Jakob Disease

A rare, degenerative, and invariably fatal brain disorder caused by an abnormal version of a protein known as a prion.

Mild Neurocognitive Disorder

A condition involving slight cognitive decline from a previous level of performance, without significantly impairing daily function.

Major Delirium

A severe state of mental confusion that can result in emotional disruption and cognitive impairments, often due to illness, injury, or substance use.