The Most Important Information in a News Release Should Be

question 32

Multiple Choice

The most important information in a news release should be

• A) saved for the last paragraph for dramatic effect.
• B) focused totally on selling the writer's company and its products.
• C) concentrated at the beginning of the release.
• D) highlighted briefly in the middle paragraphs.

---

Definitions:

MM Proposition

Refers to the Modigliani-Miller theorem, which posits that under certain market conditions the value of a company is unaffected by how it is financed, whether through debt or equity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, representing how a firm finances its overall operations and growth.

Miller's Theory

Miller's Theory, part of the Modigliani-Miller theorem, posits that in perfect markets, the value of a company is unaffected by how it is financed, regardless of whether it's through debt or equity.

MM Propositions

The Modigliani-Miller propositions, fundamental theories in corporate finance that suggest, under certain conditions, the value of a firm is unaffected by its capital structure.