Which of the Following Is Not One of the Simplifying

question 42

Multiple Choice

Which of the following is not one of the simplifying assumptions made for the three main methods of capital budgeting?

• A) The firm pays out all earnings as dividends.
• B) The project has average risk.
• C) Corporate taxes are the only market imperfection.
• D) The firm's debt-equity ratio is constant.

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Definitions:

Self-Actualization Theory

A concept in psychological theory, particularly in humanistic psychology, positing that the ultimate goal of life is to achieve one's full potential and self-fulfillment.

Existence of Evil

The presence and influence of morally bad or harmful actions, intentions, or circumstances in the world.

Metaneeds

In Abraham Maslow's hierarchy of needs, these are the highest-level needs, involving self-actualization and the realization of one's potential.

States of Being

The various conditions or qualities that define the existence of a person or thing at any given time.