Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A)With all-equity companies,the rate of return to shareholders is always equal to the rate of return on assets.
• B)With debt,the rate of return to shareholders is always equal to the rate of return on assets providing the rate of return on assets is equal to the interest rate.
• C)If the rate of return on assets is greater than the interest on debt,then leverage results in lower rates of return on equity.
• D)If the rate of return on assets is less than the interest rate on debt,then leverage results in lower rates of return on equity.

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Definitions:

Paroxysmal Cough

A sudden and intense coughing fit, which can be characteristic of certain medical conditions, such as whooping cough.

Whooping Cough

A highly contagious bacterial infection of the respiratory tract characterized by severe hacking coughs followed by a high-pitched intake of breath that sounds like "whoop."

Crowing Sound

A sharp, harsh sound resembling the cry of a rooster, often associated with breathing difficulties.

Tidal Volume

The amount of air inhaled or exhaled during a normal breath at rest.