Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A)If there is uncertainty regarding EBIT,then with a higher interest expense there is a greater risk that interest will exceed EBIT.
• B)Even for a firm with positive earnings,growth will affect the optimal leverage ratio.
• C)From a tax perspective,the firm's optimal level of debt is proportional to its current earnings.
• D)The optimal proportion of debt in the firm's capital structure will be higher,the higher the firm's growth rate.

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Definitions:

Early Pubertal Maturation

The onset of puberty at an earlier age than is considered typical, which can have various psychological and physical impacts on individuals.

Incidence of Depression

The rate or frequency at which new cases of depression occur in a specified population over a particular period of time.

Life Satisfaction

A measure of an individual's overall contentment with their life, often considered in psychological studies as a component of subjective well-being.

Endocrine System

A network of hormone-secreting glands associated with changes in the individual’s mood, metabolism, and growth. The glands associated specifically with puberty include the pituitary gland, the thyroid gland, the adrenal glands, and the sex glands (gonads).