Which of the Following Statements Is False

question 32

Multiple Choice

Which of the following statements is false?

• A) The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure.
• B) The most common choices are financing through equity alone and financing through a combination of debt and equity.
• C) The project's NPV represents the value to the new investors of the firm created by the project.
• D) When corporations raise funds from outside investors, they must choose which type of security to issue.

---

Definitions:

Total Utility

The total satisfaction or benefit received by consuming a particular quantity of a good or service.

Marginal-Utility Schedules

Charts or tables showing the relationship between the quantity of a good consumed and the marginal utility or satisfaction received from consuming each additional unit.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from consuming goods and services, given their income and prices of goods.

Satisfaction Per Dollar

A measure of the utility or happiness a consumer gains per unit of expenditure.