Which Statement Makes This a False Statement? When a Firm

question 87

Multiple Choice

Which statement makes this a false statement? When a firm pays commissions to underwriting firms that float the issuance of new stock

• A) the component cost will need to be integrated to figure project WACCs.
• B) the component cost will need to be integrated only for the firm's WACC.
• C) the firm can increase the project's WACC to incorporate the flotation costs' impact.
• D) the firm can leave the WACC alone and adjust the project's initial investment upwards.

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Definitions:

Employers

Individuals or entities that hire and pay people to perform specific jobs or services.

Employees

Individuals officially hired by an organization to perform specified duties and tasks in exchange for compensation.

Corporate Philanthropy

The act of a corporation donating some of its profits or resources to charitable causes as part of its CSR (corporate social responsibility) initiative.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.