Which of the Following Statements Is False with Regard to Cash

question 40

Multiple Choice

Which of the following statements is false with regard to cash flows resulting from financing costs?

• A) They should be included in the cash flow calculations.
• B) Financing cash flows can include dividend payments to stockholders and interest payments to bondholders.
• C) Financing costs are captured in the discount of a project's cash flows.
• D) If cash outflows associated with financing costs were deducted from the cash flows for a project,it would be double-counting the financing costs of the investment.
• E) All of the above statements are false.

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Definitions:

Priority

Something that is regarded as more important than another and therefore needs to be dealt with first.

General-to-specific

A pattern of organization where information is presented from broad concepts to detailed points, often used in writing and speech.

Problem-solution

A text structure that presents a problem and offers one or more solutions for it.

Complaint Letter

A letter that expresses dissatisfaction with a product or service.