Which of the Following Statements Is FALSE

question 85

Multiple Choice

Which of the following statements is FALSE?

• A)A firm must balance the tax costs of holding cash with the potential benefits of having to raise external funds in the future.
• B)Paying out excess cash through dividends or share repurchases can boost the stock price by reducing managers' ability and temptation to waste resources.
• C)If there is a reasonable likelihood that future earnings will be insufficient to fund future positive-NPV investment opportunities,a firm may start accumulating cash to make up the difference.
• D)According to the managerial entrenchment theory of payout policy,managers pay out cash only when pressured to do so by the firm's investors.

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Definitions:

Tuberculosis

A serious infectious disease caused by Mycobacterium tuberculosis, characterized by the growth of nodules (tubercles) in the tissues, especially the lungs.

Caddo Population

Refers to the members or number of individuals belonging to the Caddo, a Native American tribe originally from the southeastern United States, now primarily in Oklahoma.

Disease

A disorder or malfunction of the mind or body that results in significant symptoms, impacting an individual's normal functioning or well-being.

Hernando De Soto

A 16th-century Spanish explorer and conquistador known for his expeditions in the Americas, particularly in the Southeastern United States.