Which of the Following Statements Is False

question 63

Multiple Choice

Which of the following statements is false?

• A) For capital budgeting purposes, the project's financing is the incremental financing that results if the firm takes on the project.
• B) Projects with safer cash flows can support more debt before they increase the risk of financial distress for the firm.
• C) If the positive free cash flow from a project will increase the firm's cash holdings, then this growth in cash is equivalent to a reduction in the firm's leverage.
• D) The incremental financing of a project corresponds directly to the financing that is directly tied to the project.

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Definitions:

Psychosexual Stages

Freud's theory on the stages of psychological development in childhood, each associated with a different erogenous zone.

Anal Stage

In psychoanalytic theory, the stage of psychosexual development, from about 18 months to 3 or 4 years of age, in which the physical focus of the libido is located in the anus and associated eliminative organs.

Phallic

Relating to or resembling a phallus, often used in Freudian psychology to describe the developmental stage focusing on the genitals.

Oral

Referring to the initial stage of Freudian psychosexual development, during which the mouth is the primary source of pleasure and exploration.