Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) Even though firms have not issued new equity, the market value of equity has risen over time as firms have grown.
• B) While firms seem to prefer debt when raising external funds, not all investment is externally funded.
• C) To receive the full tax benefits of leverage a firm needs to use 100% debt financing.
• D) If bankruptcy is costly, these costs might offset the tax advantages of debt financing.

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Definitions:

Olfactory

Pertains to the sense of smell.

Myelin Sheath

A layer of fat cells that encases and insulates most axons.

Dendrite

Extensions of neurons that receive signals from other neurons, playing a crucial role in the transmission of neural information.

Nucleolus

A small dense spherical structure in the nucleus of a cell during interphase, involved in the production and assembly of ribosomes.