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:

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), which severely damages the immune system.

Contagious Disease

An infectious disease that can be transmitted from one individual to another through direct contact, airborne particles, or other means.

ISAS

A shorthand presentation of the symbolic interactionist’s statement: Behavior of the individual is in response to symbols, relative to the audience, and relative to the situation.

Biological Aspects

The components or characteristics of an organism or any of its parts influenced by genetics and biology.